With savers facing yet another year of record low rates, I believe those in search of income should consider one of the many high quality dividend shares listed on the ASX.
Here are three top dividend shares I would buy this month:
Accent Group Ltd (ASX: AX1)
Accent is a footwear focused retail company. Its shares have fallen very heavily over the last few weeks due to concerns that the coronavirus could impact the company's supply chain and consumer demand for its products. I think this selloff has been severely overdone and has left Accent trading at dirt cheap levels. Based on its last close price, its shares were changing hands at 13x FY 2019 earnings and offering a very generous trailing fully franked 6.9% dividend yield.
Commonwealth Bank of Australia (ASX: CBA)
I believe Commonwealth Bank is the highest quality bank in the big four. But up until recently, I felt its shares were a little on the expensive side. However, with the banks being sold off this month, I believe its shares are now trading at an attractive level for income investors. Based on its last close price and factoring in a small cut to its dividend in FY 2020, Commonwealth Bank's shares provide a forward fully franked 5.7% dividend yield at present.
Vanguard Australian Shares High Yield ETF (ASX: VHY)
If you don't have enough funds to invest in a diverse group of dividend shares, then don't worry. Because the Vanguard Australian Shares High Yield ETF will allow you to gain exposure to a large number of the highest yielding shares on the Australian share market. The ETF provides investors with the option of investing in all the big four banks and blue chips shares such as BHP Group Ltd (ASX: BHP), Telstra Corporation Ltd (ASX: TLS), and Wesfarmers Ltd (ASX: WES) in a single investment. Its units currently provide investors with an ~80% franked 5.4% dividend yield.
