If you're looking for a source of income in this low interest rate environment, then I think the share market remains the best place to start.
Three top dividend shares which I would buy for income right now are listed below. Here's why I like them:
Commonwealth Bank of Australia (ASX: CBA)
I believe it is inevitable that tough trading conditions will mean Commonwealth Bank will cut its dividend this year, especially given APRA's recent request. However, I feel this and the impacts of the coronavirus pandemic on the banking sector have been priced into its shares already. In light of this, I think now would be an opportune time to invest. I estimate that Commonwealth Bank will pay a dividend of ~$3.70 in FY 2021, which equates to a forward fully franked ~6% dividend yield.
Dicker Data Ltd (ASX: DDR)
Dicker Data is a wholesale distributor of computer hardware and software products throughout Australia. Thanks to a growing number of vendor agreements and increasing demand for its products, Dicker Data has been a very strong performer over the last few years. This has allowed the company to grow its dividend at a rapid rate over the period, much to the delight of its shareholders. The good news is that I believe Dicker Data is well-placed to continue this positive form for some time to come. As a result, I estimate that its shares offer a forward fully franked 4.7% dividend yield.
Wesfarmers Ltd (ASX: WES)
A final dividend share to consider buying is Wesfarmers. I think it could be a good option for investors right now. This is due to the strong demand its Bunnings business is experiencing during the pandemic. This is particularly import as the Bunnings business contributes almost two-thirds of its earnings. Outside the pandemic, I like Wesfarmers due to the quality and diversity of its portfolio and its positive long term growth prospects. Its shares currently offer an estimated forward fully franked 4% dividend yield.
