Luckily in this low interest rate environment, the Australian share market 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 great options for income investors:

Aventus Group (ASX: AVN)

The first dividend share to consider buying is Aventus. This retail property company specialises in large format retail parks across Australia. Given how Aventus’ rental income has a reasonably high weighting towards everyday needs, I think it well-placed to navigate the tough trading conditions facing the retail sector. This is a view I share with Goldman Sachs, which remains very positive on the company. So much so, it has forecast a ~17.3 cents per unit distribution in FY 2021. This equates to a forward ~7.8% distribution yield.

Sydney Airport Holdings Pty Ltd (ASX: SYD)

As long as the recent spike in coronavirus cases in Victoria doesn’t get out of control, I’m optimistic domestic tourism will rebound strongly over the remainder of 2020. Especially given recent reports of pent up demand for travel in Australia after months of restrictions. This could put Sydney Airport in a position to start paying a decent dividend again in FY 2021. At this point, I expect the airport operator to pay shareholders a 29 cents per share dividend next year. This represents a forward 4.9% dividend yield based on its last close price.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

If you don’t have enough funds 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 provides investors with exposure to 62 of the highest yielding shares on the ASX through just a single investment. This includes the big four banks, telcos, and shares like Sydney Airport. At present I estimate that its units offer a forward dividend yield of at least 4.5%.

More reading

• ASX 200 finishes flat, ASX travel shares drop
• The ASX stocks worst hit by second wave COVID-19 fears
• These 5 ASX shares saw the biggest losses last week
• ASX share price winners and losers of last week
• ASX 200 Weekly Wrap: ASX back in the green

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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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The Commonwealth Bank of Australia (ASX: CBA) share price could be one to watch on Tuesday after a late announcement out of the banking giant on Monday afternoon.

What did Commonwealth Bank announce?

After the market close on Monday, Commonwealth Bank announced that it had been hit with further civil action.

According to the announcement, civil proceedings have been brought by the Australian Securities and Investments Commission (ASIC) against the banking giant and its wholly owned Colonial First State Investments Limited business.

Colonial First State is a provider of superannuation, investment, and retirement products to individuals and corporate and superannuation fund investors. It is also the operator and administrator of investment platforms.

In May, Commonwealth Bank announced that it had entered into an agreement to sell a 55% interest in Colonial First State to KKR. The transaction implies a total valuation (on a 100% basis) of $3.3 billion, which will result in the bank receiving cash proceeds of approximately $1.7 billion from KKR if the deal completes next year.

What is ASIC alleging?

The civil proceedings that have been brought by ASIC are based on findings during the Royal Commission.

The corporate regulator alleges certain contraventions of conflicted remuneration provisions in the Corporations Act relating to the arrangement between the two parties for the distribution of Commonwealth Essential Super.

Here’s a snippet from the Royal Commission hearing:

“Counsel Assisting submits that it is open to the Commission to find that the Distribution Agreement between CBA and CFSIL may have contravened the conflicted remuneration provisions of the Corporations Act.”

“This is because the Distribution Agreement provides for a benefit (an annual fee of 30% of the total net revenue earned by the trustee in relation to the fund) given to an AFS licensee (CBA) which, in Counsel Assisting’s submission, could reasonably be expected to influence the financial product advice given by CBA to its retail clients.”

The bank and Colonial First State are reviewing ASIC’s claim and will provide any further update as required.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Why Morgans is urging investors to buy ASX big bank stocks today
• Consider these 2 ASX fintech shares before they take off
• The NAB share price has fallen 24%. Should you buy?
• ASX 200 Weekly Wrap: ASX back in the green

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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On Monday the S&P/ASX 200 Index (ASX: XJO) started the week in a subdued fashion. The benchmark index edged ever so slightly higher to 5,944.5 points.

Will the market be able to build on this on Tuesday? Here are five things to watch

ASX 200 expected to rise.

It looks set to be a positive day of trade for the ASX 200 on Tuesday after U.S. stocks pushed higher. According to the latest SPI futures, the benchmark index is expected to rise 39 points or 0.65% at the open. Overnight on Wall Street the Dow Jones pushed 0.6% higher, the S&P 500 rose 0.65%, and the Nasdaq index jumped 1.1%.  

Oil prices jump.

Energy producers including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could push higher today after oil prices started the week strongly. According to Bloomberg, the WTI crude oil price is up 2.15% to US$40.60 a barrel and the Brent crude oil price is 2.05% higher to US$43.06 a barrel. This is the first time the WTI crude oil price has been over US$40 a barrel since March.

Gold price higher.

Gold miners such as Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) look set to continue their positive runs on Tuesday. According to CNBC, the spot gold price is up 0.75% to US$1,765.90 an ounce after demand for the safe haven asset increased following an uptick in coronavirus cases.

Challenger set to return.

The Challenger Ltd (ASX: CGF) share price looks likely to return from its trading halt this morning. The annuities company requested the halt on Monday while it undertook a $300 million equity raising. These funds will be raised at $4.89 per new share, which represents an 8.1% discount to its last close price of $5.32. The proceeds will be used to further strengthen its capital position and provide flexibility to enhance earnings.

Commonwealth Bank hit with civil proceedings.

The Commonwealth Bank of Australia (ASX: CBA) share price will be on watch today after a late announcement out of the bank on Monday. That announcement revealed that civil proceedings have been brought by ASIC against the bank and its Colonial First State Investments business. The claim alleges certain contraventions of conflicted remuneration provisions in the Corporations Act relating to the arrangement between the two parties for the distribution of Commonwealth Essential Super.

More reading

• ASIC hits Commonwealth Bank with civil proceedings
• ASX 200 finishes flat, ASX travel shares drop
• Afterpay and 2 more ASX 200 shares to watch this week
• The ASX stocks worst hit by second wave COVID-19 fears
• Is the Challenger share price a buy?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Challenger Limited. 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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