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Why I would buy NAB and these ASX dividend shares

James Mickleboro
NAB bank share price

If you’re looking for dividend shares to invest in, then you’re in luck. The Australian share market is home to a large number of quality options for income investors.

Three that I would buy are listed below. Here’s why I like them:

Lendlease Group (ASX: LLC)

Lendlease is an international property and infrastructure group. After a couple of years of underperformance, I am confident it is over the worst of its issues now and worth considering. Especially given its positive growth outlook thanks partly to its multi-billion dollar development project with Google. But that’s not the only project in its pipeline. Lendlease’s last update revealed that its development pipeline was approaching $100 billion in project value. I expect this to support solid earnings and dividend growth for the many years to come. At present I estimate that its shares offer a fully franked 3.7% forward dividend yield.

National Australia Bank Ltd  (ASX: NAB)

If you don’t already have exposure to the banking sector, then I would suggest you consider buying NAB’s shares. I thought it was the strongest performer of the big four banks in FY 2019 and feel this positive form can continue over the medium term. Especially considering the improving housing market and the bank’s overweight exposure to SME lending. Its shares currently offer investors a trailing fully franked 6.3% dividend yield.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

A final option for investors to consider buying is the Vanguard Australian Shares High Yield ETF. As its name implies, this ETF provides investors with exposure to some of the highest paying dividend shares on the Australian share market. This diverse group includes the big four banks, mining giants BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO), and telco company Telstra Corporation Ltd (ASX: TLS). It currently offers a dividend yield of ~5.2%.

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 Telstra 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. 2019