If you're looking for a source of income in this low interest rate environment, then you may want to consider investing in one of the many dividend shares on offer on the ASX.
Three top dividend shares that I feel are in the buy zone are listed below. Here's why I like them:
Aventus Group (ASX: AVN)
Aventus is the largest fully integrated owner, manager and developer of large format retail parks in Australia. It currently owns 20 centres which are home to some of the biggest retailers in the country. This includes the likes of Bunnings, The Good Guys, Officeworks, and Domayne. The popularity of its centres with consumers has led to strong demand for tenancies and has supported a very high occupancy rate. I believe this positions it well for growth over the coming years. In the meantime, I estimate that its shares offer a forward 5.9% distribution yield.
National Australia Bank Ltd (ASX: NAB)
This banking giant has started FY 2020 on a positive note. In the first quarter the bank surprised the market by reporting a 1% increase in cash earnings. This was thanks largely to its improving net interest margin. Another positive was that NAB reported a small decline in its bad debts. Overall, I believe this has positioned the company well to deliver modest growth in FY 2020. Especially given the improving housing market, its overweight exposure to SME lending, and broadly flat expense target. I expect the bank to pay a $1.66 per share fully franked dividend this year. This equates to a dividend yield of almost 6.1%.
Transurban Group (ASX: TCL)
Another dividend share to consider buying is Transurban. The toll road operator recently released its half year result and revealed that it has continued its positive form in FY 2020. During the half Transurban reported a 2.3% increase in average daily traffic on its roads. Combined with toll price increases, this led to the company's proportional toll revenue increasing by 8.6% to $1,396 million. This strong start to the financial year has allowed the Transurban board to reaffirm its FY 2020 distribution guidance of 62 cents per share. This equates to a 3.8% distribution yield.
