With interest rates at record lows and possibly still going lower, it is becoming increasingly difficult for income investors to generate a sufficient income from bonds and term deposits.
Thankfully, the share market is home to a large number of shares that offer dividend yields that smash these low interest rates.
Here are three top ASX dividend shares I would buy in 2020:
Helloworld Travel Ltd (ASX: HLO)
I think that Helloworld is a great option for income investors. I believe the integrated travel company is a top option due to its solid growth prospects and generous dividend yield. Helloworld has been growing at a solid rate in recent years and has started the new financial year strongly. It recently reported first quarter EBITDA growth of 7.7%. I believe this puts it in a great position to deliver further solid profit and dividend growth in FY 2020. At present its shares offer a trailing fully franked 4.2% dividend yield.
National Australia Bank Ltd (ASX: NAB)
The banking sector has come under significant pressure in recent weeks due to a series of negative events. And while this has been very disappointing, I believe the pullback in its share price has been overdone. The good news for non-shareholders is that this has left its shares trading at a very attractive level. Which could make now an opportune time to pick up shares, especially given the recent improvements in the housing market and its generous dividend yield. Based on its current share price, its shares offer a trailing fully franked 6.7% dividend yield.
Telstra Corporation Ltd (ASX: TLS)
A third option for income investors to consider buying is Telstra. I think now is a good time to buy the telco giant's shares. This is because its outlook has greatly improved in recent months thanks to the strong progress it is making with its T22 strategy and status of the NBN rollout. In respect to the latter, peak NBN pain is going to hit Telstra in FY 2021. Combined with its cost cutting, rational competition, and the arrival of 5G, I believe a return to growth isn't that far away. For now, though, I believe its current cash flows will be more than sufficient to maintain its 16 cents per share dividend. This equates to a fully franked 4.3% dividend yield.
