Reliable dividend shares are hard to come by. The 4 major banks were always thought of as a reliable investment for income, right up to when they all deferred their dividends this year.
But as things are starting to become normal again, I believe these 4 great shares will provide reliable dividends, a great dividend yield, and a chance for share price growth.
Mining dividend shares
Not all miners pay dividends. In fact, the gold industry eschews them almost completely. St Barbara Ltd (ASX: SBM) is one of the highest paying of the large gold miners at a trailing 12 month (TTM) dividend yield of 2.68%.
Fortescue Metals Group Limited (ASX: FMG) pays one of the highest dividend yields of the large-cap mining companies. At the time of writing Fortescue has a TTM dividend yield of 7.14%. This is higher than iron ore rival, BHP Group Ltd (ASX: BHP) with a TTM of 5.97%. In addition, I believe Fortescue is currently selling at a good price anywhere under ~$15.
Consumer discretionary
Harvey Norman Holdings Limited (ASX: HVN) currently has a TTM dividend yield of 5.97%. The company recently announced it would pay a special dividend of 6 cents a share on 29 June to any shareholder registered by 23 June. Aside from anything else, that is an additional payment of 1.7% on top of the regular dividend payments.
The company has seen its dividend payment increase year on year by around 9.4% over a 10 year period. In addition, it has a healthy 10-year average return on equity of 11.8%. Meaning it is pretty good at generating returns from its net assets.
Real estate dividend shares
Right now I really like Vicinity Centres (ASX: VCX) for a whole range of reasons. In particular, I think they did a good thing with their share placement recently. This helped them to reduce the company's gearing from 34.9% down to 26.6%. In addition, it provided them with a cash and unused debt facilities war chest of $2.6 billion.
Be aware that they have deferred their current dividend due to the pandemic. However, the company has a history of reliable distributions and is tightly managed. At the time of writing Vicinity Centres had a TTM dividend yield of 10.16%.
The banks
The best dividend opportunity of the big 4 banks right now is Westpac Banking Corp (ASX: WBC). Although it has also deferred its decision on the current dividend, it had previously been a reliable dividend share.
At the time of writing Westpac is paying a TTM dividend yield of 9.62%. Moreover, while this company definitely has a few miles of bad road ahead of it, respected analysts have been saying it is undervalued. I believe it to be a very sound company with new management in place.
