Fortunately for income investors in this low interest rate environment, the Australian share market is home to plenty of shares offering very generous yields.
Two that do just this are listed below. Here’s why they could be top options for income investors:
Aventus Group (ASX: AVN)
The first ASX dividend share to look at is Aventus. It is a leading owner, manager, and developer of retail parks. Aventus has been performing very positively during the pandemic. This has been driven by its overweight exposure to categories such as household goods and everyday needs retailing, which have experienced strong and sustained consumer demand.
Things have been going so well that Aventus recently revealed that the value of its properties have increased by 12% since the end of December. It also advised that it expects its earnings to grow 7% this year, compared to its prior guidance of 4% growth.
This went down well with analysts at Goldman Sachs, who retained their buy rating and lifted their price target to $3.27. It commented: “Today’s update solidifies our view that AVN is relatively well positioned in the current environment, given its Large Format Retail portfolio derives 37% of income from everyday needs tenants and the remainder from homewares, electrical, furniture, bedding and hardware, all of which we expect to continue to perform relatively well.”
The broker is also forecasting distributions per share of 16.7 cents, 18.85 cents, and then 20.4 cents between now and FY 2023. Based on the current Aventus share price of $3.14, this represents yields of 5.2%, 5.9%, and 6.4%, respectively.
Suncorp Group Ltd (ASX: SUN)
Another dividend share to look at is Suncorp. Thanks to improving trading conditions which are being underpinned by Australia’s strong economic recovery, this banking and insurance giant appears well-placed to pay attractive dividends to shareholders in the near term.
The analysts over at Citi certainly believe this will be the case. In fact, the broker suspects that things are going so well that a special dividend could be declared this year. Citi is forecasting dividends of 61 cents per share in FY 2021 and then 58 cents per share in FY 2022.
With the Suncorp share price currently fetching $11.36, this implies fully franked yields of 5.35% and 5.1%, respectively, over the next two years. Citi has a buy rating and $11.80 price target on its shares.
The post 2 top ASX dividend shares for income investors appeared first on The Motley Fool Australia.
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Returns As of 15th February 2021
More reading
- A dividend bonanza could be inbound for ASX shares, here’s why
- Here are 3 ASX 200 shares that were on the move today
- Why Appen, Aventus, HomeCo Daily Needs, & Ramelius are dropping
- Suncorp (ASX:SUN) share price bucks market downtrend on ~$84m divestment
- Why the Suncorp (ASX:SUN) share price is on the rise today
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended AVENTUS RE UNIT. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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