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3 ASX income shares with generous dividend yields

James Mickleboro

If you’re in search of a source of income, then you’re in luck. This is because right now there are a large number of shares on the ASX that offer generous dividend yields.

Three dividend shares that I would suggest investors consider buying are listed below. Here’s why I like them:

Accent Group Ltd (ASX: AX1)

One top dividend share to consider is Accent Group. It is the footwear-focused retail group behind popular retail chains such as Athlete’s Foot, HYPE DC, and Platypus. The company also has the exclusive rights to a number of popular global footwear brands in the Australian market, which I feel gives it an edge over the competition. It started FY 2020 on a very positive note and appears well-placed for further profit and dividend growth this year. At present I estimate that its shares offer a forward fully franked 5.1% dividend yield.

National Australia Bank Ltd (ASX: NAB)

My favourite big four bank to buy right now is NAB. Especially after the pullback in its share price over the last few months. I think this has left NAB’s shares trading at a very attractive level for income investors. Not least given its improving outlook due to the improving housing market and its exposure to the SME lending market. Another positive is that NAB’s shares offer one of the most generous dividend yields on the market. Even after factoring in a potential cut in FY 2020, I estimate that its shares offer investors a fully franked forward 6.3% dividend yield.

Transurban Group (ASX: TCL)

This toll road operator is one of my favourite dividend shares . I’m a big fan of Transurban due to its high quality portfolio of toll roads in Australia and North America, the increasing number of vehicles using them, and their strong pricing power. Pleasingly, due to a combination of population growth and the worsening of congestion on major arterial roads, I’m confident that vehicle numbers will continue to rise over the next decade. Combined with acquisitions and developments, I expect this to support solid income and distribution growth for a long time to come. At present Transurban’s shares offer a forward 3.9% distribution yield.

The post 3 ASX income shares with generous dividend yields appeared first on Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Transurban Group. The Motley Fool Australia owns shares of National Australia Bank Limited. The Motley Fool Australia has recommended Accent Group. 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 Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2020