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Why I would buy NAB and these ASX dividend shares

James Mickleboro
NAB bank share price

If you’re searching for a source of income in this low interest rate environment then you might want to consider the ASX dividend shares listed below.

I believe all three are top options for income investors right now. Here’s why I like them:

Macquarie Group Ltd  (ASX: MQG)

I think that this investment bank could be a good option for income investors. I’m a big fan of Macquarie mainly due to the quality and diversity of its operations. This has allowed the company to continue growing its earnings at a time when the big four bank have struggled. Combined with its world class management team, I believe Macquarie is one of the highest quality companies on the ASX and well-placed for solid long-term growth. At present Macquarie’s shares offer an estimated partially franked forward dividend yield of approximately 4.1%.

National Australia Bank Ltd  (ASX: NAB)

With the housing market now rebounding, I expect trading conditions to improve for the big four banks in near term. Which could make it a good time to pick up the shares of NAB. Especially with them changing hands on below average multiples and offering one of the more generous dividend yields on the local 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.

Sydney Airport Holdings Pty Ltd  (ASX: SYD)

Another income share to consider buying is Sydney Airport. Although the coronavirus outbreak is likely to weigh on international visitors into Sydney, I’m optimistic this will only be a short term issue and expect tourism to continue to grow at a solid rate over the next decade. I feel this could make it worth considering an investment with a long term view. Though it may be best to wait until its results have been released this month. Its shares currently offer investors an estimated forward 4.7% dividend yield.

The post Why I would buy NAB and these ASX dividend shares 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 Macquarie Group Limited and Sydney Airport Holdings Limited. The Motley Fool Australia owns shares of National Australia Bank 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 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