Although the recent market selloff has been very disappointing, one small positive is that it has dragged a number of popular dividend shares down to very attractive levels.
Three dividend shares that I think would be great options for income investors are listed below. Here's why I like them:
Accent Group Ltd (ASX: AX1)
Accent is a footwear focused retail company which I think has fallen into the bargain bin. Around two weeks ago, Accent's shares were trading at a 52-week high of $2.21. Whereas today they are changing hands at $1.42, down almost 36% from their high. And this is despite the company delivering a very strong half year update last month with sales up 10.9% to $507.9 million and net profit after tax up 9.7% to $35.3 million. This allowed the Accent board to lift its interim dividend by 18% to 5.3 cents. Which means its shares offer a trailing fully franked 6.4% dividend yield.
Telstra Corporation Ltd (ASX: TLS)
This telco giant's shares are down 7.5% since this time last month due to the market volatility. This is even after the company delivered a solid half year result and reaffirmed its guidance last month. I think this share price weakness is a buying opportunity for investors. Especially given its improving outlook due to cost cutting, the progress of the NBN rollout, and the return of rational competition. At present Telstra's shares offer investors a fully franked 4.5% dividend yield.
Transurban Group (ASX: TCL)
A final dividend share to consider buying is Transurban. The toll road operator's shares have fallen 7% from their 52-week high despite a very strong half year update and the Reserve Bank's cash rate cut. And while there are concerns that a coronavirus epidemic could lead to fewer cars on its roads, I'm optimistic it won't get to that. And even if it does, their strong pricing power should go some way to offsetting any decline in traffic. Last month the company reaffirmed its plan to increase its FY 2020 distribution to 62 cents per share. This equates to a distribution yield of 4.1%.
