Fortunately, in this low interest rate environment, the Australian share market is home to a good number of dividend shares that offer generous yields.
Two top ASX dividend shares that I would be buying right now are listed below. Here's why I think they are top options for income investors:
Sydney Airport Holdings Pty Ltd (ASX: SYD)
If you can afford to be patient, then I think Sydney Airport would be a great dividend share to buy. The short term will be difficult the airport operator, but the crisis will pass and trading conditions will eventually return to normal. I believe this makes it worth considering a patient investment in the company's shares. A recent note out of Goldman Sachs reveals that it expects travel markets to have recovered enough for the company to pay a 29 cents per share distribution in FY 2021. After which, the broker is forecasting a 37 cents per share distribution in FY 2022. This implies 4.75% and 6.05% distribution yields, respectively, over the next couple of years.
VanEck Vectors Australian Banks ETF (ASX: MVB)
If you don't have exposure to the banking sector, then I think it could be worth looking at the VanEck Vectors Australian Banks ETF. Instead of trying to decide whether to buy Commonwealth Bank of Australia (ASX: CBA) or one of the other big four banks for dividends, this exchange traded fund gives you a piece of them all. It also gives investors exposure to the regional banks and investment bank Macquarie Group Ltd (ASX: MQG) as well. Due to dividend suspensions, cuts, and cancellations, it is hard to forecast what its dividends will be. However, I'm confident the VanEck Vectors Australian Banks ETF will provide investors with a dividend yield of at least 5% in FY 2021.
