Luckily for income investors in this low interest rate environment, there are plenty of dividend shares that offer superior yields to those that you’ll find with term deposits and savings accounts.

Three fantastic ASX dividend shares that I would buy today are listed below. Here’s why I like them:

BWP Trust (ASX: BWP)

BWP is a real estate investment trust which has close ties with Wesfarmers Ltd (ASX: WES). Not only are the majority of its warehouses leased to Wesfarmers’ Bunnings business, the conglomerate is also a major shareholder in the trust. I think this is a big positive as the Bunnings owner is unlikely to do anything that would have a negative impact on BWP’s performance and ultimately its investment. Overall, I believe this leaves it well-placed for modest and consistent income and distribution growth over the next decade. At present I estimate that it offers investors a forward 5.1% yield.

Rio Tinto Limited (ASX: RIO)

Another dividend share to look at buying is this mining giant. I think Rio Tinto could be a great option due to its world class operations and the high levels of free cash flow it is generating. Especially given how high iron ore prices have been trading this year. And with many tipping prices to remain strong in 2021, Rio Tinto looks well-positioned to reward shareholders handsomely with dividends over the next couple of years. I estimate that its shares offer a forward dividend yield of at least 5%. But this could be much higher if special dividends are paid next year.

Transurban Group (ASX: TCL)

A final dividend share to consider buying is Transurban. It is a toll road operator with a number of key roads in Australia and North America. While its performance is likely to disappoint in the near term because of the pandemic, I expect traffic volumes to normalise as restrictions ease. So with its shares still down 12% from their high (and likely to go lower today), I believe it could be a great time to consider a long term and patient investment. I estimate that its shares offer a 3.3% FY 2021 distribution yield.

More reading

• 2 top ASX dividend shares you can buy right now
• Is the Wesfarmers share price good value?
• 2 top ASX dividend shares for income in 2020
• Why I think Wesfarmers is the best ASX blue chip
• Leading brokers name 3 ASX 200 shares to sell today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Transurban Group and Wesfarmers 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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