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.

More reading

• Why the Wesfarmers share is beating the ASX 200
• How the ASX 200 can help first home buyers save for a deposit
• ASX 200 down 1.3%: Big four banks tumble, Afterpay tipped to go higher
• Where to invest $5,000 in an irrational market
• Next phase of bull market could see ANZ Bank outperform Afterpay

Motley Fool contributor Daryl Mather owns shares of Fortescue Metals Group Limited. 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.

The post Where to invest for reliable dividend shares appeared first on Motley Fool Australia.

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With so many quality blue chip shares to choose from on the Australian share market, it can be hard to decide which ones to buy.

To narrow things down I have picked out three blue chip ASX 200 shares which I think are standout buys. Here’s why I like them:

Goodman Group (ASX: GMG)

Goodman Group is an integrated commercial and industrial property group which owns, develops, and manages industrial real estate globally. I think it is positioned perfectly for growth over the long term thanks to some very smart investments over the last decade. These include gaining exposure to the structural tailwinds of the ecommerce market with properties leased to the likes of Amazon and DHL. Based on how quickly online shopping is growing, especially after the pandemic, these assets are likely to be in demand for a long time to come. I expect this to underpin solid earnings and distribution growth throughout the 2020s. I think this makes it a blue chip share to buy.

REA Group Limited (ASX: REA)

Although times have been hard for this property listings company this year because of the pandemic, I’ve been very impressed at the resilience of its business model. Despite a sharp drop in property listings, it was able to reduce costs and grow its profits during the third quarter. The good news is that trading conditions are improving as social distancing restrictions ease and listing volumes appear to be recovering. I expect this to lead to REA Group’s profit growth accelerating in FY 2021 and FY 2022.

Telstra Corporation Ltd (ASX: TLS)

A final blue chip share to look at buying is Telstra. I like the telco giant due to its T22 strategy, which is aiming to turn the company into a leaner and lower cost operation. In addition to this, the return of rational competition in the telco market, the easing of the NBN headwind, and its leadership position in 5G are other reasons to be positive. The latter is expected to be a key driver of growth over the next few years and could help underpin modest profit and dividend growth from FY 2022 onwards.

More reading

• Why the Wesfarmers share is beating the ASX 200
• 5 things to watch on the ASX 200 on Friday
• ASX 200 falls 0.9%, Afterpay share price hits new record
• Is the Cochlear share price in the buy zone now that it’s down 23%?
• Top brokers have just downgraded Carsales.Com and these outperforming ASX 200 stocks

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

The post Why I would buy Telstra and these ASX 200 blue chip shares appeared first on Motley Fool Australia.

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