Fortunately in this low interest rate environment, the ASX has a large number of shares offering attractive dividend yields.
But which dividend shares should you buy? I think the three listed below would be top options for income investors right now:
Aventus Group (ASX: AVN)
The first dividend share to consider buying is Aventus. It is a retail property company which specialises in large format retail parks across Australia. Retail property is generally not a good place to be right now, however Aventus is different to a company like Scentre Group (ASX: SCG). This is because its retail parks have a relatively high weighting towards everyday needs, where trading has remained strong during the pandemic. This appears to have left the company well-placed to navigate the tough trading conditions facing the retail sector right now. Goldman Sachs certainly believes this will be the case and is forecasting a ~17.3 cents per unit distribution in FY 2021. Based on the current Aventus share price, this equates to a massive forward ~8.4% distribution yield.
Dicker Data Ltd (ASX: DDR)
Another dividend share to consider buying is this wholesale distributor of computer hardware and software. Dicker Data has been a strong performer in FY 2020 and reported stellar growth during its recently completed first half. The good news is that I believe this solid form can continue for the foreseeable future thanks to the robust demand it is experiencing, new vendor agreements, and the benefits of scale. In FY 2020 the company intends to pay a 35.5 cents per share dividend. Based on the current Dicker Data share price, this represents a generous fully franked 4.8% dividend yield.
Vanguard Australian Shares High Yield ETF (ASX: VHY)
Finally, if you don’t have the funds available to maintain a truly diverse portfolio of dividend shares, then you might want to consider buying the Vanguard Australian Shares High Yield ETF. This exchange traded fund gives investors exposure to 62 of the highest yielding shares on the ASX through just a single investment. This includes the big four banks, telcos, and mining giants. At present, I estimate that its units offer a forward dividend yield of at least ~4%.
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More reading
- 2 top ASX tech shares to buy and hold beyond 2026
- Rates on hold until 2023? Buy these ASX dividend shares
- 2 ASX dividend shares to buy with $5,000 today
- These high yield ASX dividend shares will help you smash low interest rates
- 2 ASX dividend shares for income investors to buy right now
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Dicker Data Limited. The Motley Fool Australia has recommended AVENTUS RE UNIT. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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