If you're looking to add some dividend shares to your portfolio then the three listed below could be worth considering.
Here's why I think they could be great options for income investors right now:
National Australia Bank Ltd (ASX: NAB)
This banking giant pleasantly surprised the market on Thursday with a stronger than expected first quarter update. Despite this, its shares are still changing hands on lower than average price to book and price to earnings multiples. They also offer one of the more generous dividend yields on the local share market. Which, even after factoring in a potential dividend cut this year, offers income investors a fully franked forward yield of ~6.2%. This is vastly superior to anything you'll get from one of its term deposits or high-interest savings accounts.
Telstra Corporation Ltd (ASX: TLS)
I think this telco giant could be worth considering. On Thursday Telstra released its half year results and revealed that its T22 strategy is working very well. Although its EBITDA continued to slide during the half, it would have grown $90 million if you excluded the NBN rollout headwinds. So, with the end of the NBN rollout in sight and further costs being stripped out, I don't think it will be long until Telstra returns to growth again, even with the TPG-Vodafone merger. This could mean that its trailing 16 cents per share fully franked dividend starts to increase again from as early as FY 2022. For now, though, this provides a decent 4.25% dividend yield.
Transurban Group (ASX: TCL)
Another dividend share to consider buying is Transurban. It is one of the world's leading toll road operators with a portfolio of key roads in Australia and North America. It has grown its distribution each year for over a decade thanks to a combination of factors. These include acquisitions and developments, traffic growth, and toll price increases. Pleasingly, these positive trends have continued in FY 2020. Earlier this week it released its half year update and revealed a 2.3% increase in traffic during the first half and an 8.6% jump in proportional toll revenue. As a result, it reaffirmed its FY 2020 distribution guidance of 62 cents per security. This equates to a 3.8% distribution yield currently.
