Australia Markets open in 3 hrs 41 mins

Why I would buy Transurban and these All Ords dividend shares

James Mickleboro

With an average dividend yield of approximately 3.9%, the Australian share market is one of the most generous in the world.

Which certainly is a positive given the outlook for interest rates over the medium term.

But with so many top dividend options to choose from, it can be difficult to decide which ones to buy.

To help you narrow things down I’ve picked out three dividend shares which I think are amongst the best on the market. They are as follows:

National Storage REIT (ASX: NSR)

One of my favourite dividend options on the local market is this leading self-storage operator. It has successfully grown its network, income, and distribution at strong rate over the last few years thanks to its growth through acquisition strategy in a highly fragmented market. The good news is that there still appears to be plenty of opportunities for this strategy to continue and drive further solid growth over the next decade. I estimate that its shares provide a forward 5.6% distribution yield.

Rural Funds Group (ASX: RFF)

Rural Funds is an agriculture-focused property group which owns a large number of high quality assets across several industries such as cattle and wine production. Thanks to a combination of its ultra-long leases and periodic rent increases, I believe it is well-positioned to continue growing its distribution at a solid and predictable rate over the long term. Next year Rural Funds is expected to pay a 10.8 cents per share distribution, which equates to a forward 4.5% distribution yield.

Transurban Group (ASX: TCL)

A final option to consider buying is this toll road giant. It is a real favourite with income investors due to the way it has generated consistent distribution growth over the last decade. Pleasingly, I expect this to continue to be the case over the next decade thanks to the growing number of vehicles on its roads, recent acquisitions, and periodic toll prices. At present Transurban’s shares offer a trailing distribution yield of 3.9%.

And here are three more top dividend shares that are growing their payouts at a solid rate.

NEW! Top 3 Dividend Bets for 2019

With interest rates likely to stay at rock bottom for months (or YEARS) to come, income-minded investors have nowhere to turn... except dividend shares. That’s why The Motley Fool’s top analysts have just prepared a brand-new report, laying out their top 3 dividend bets for 2019.

Hint: These are 3 shares you’ve probably never come across before.

They’re not the banks. Not Woolies or Wesfarmers or any of the “usual suspects.”

We think these 3 shares offer solid growth prospects over the next 12 months. The first two currently offer fat, fully franked yields. The last is a surprising REIT offering you the benefits of being a landlord with none of the hassle! You’ll discover all three names and codes in "The Motley Fool’s Top 3 Dividend Shares for 2019."

Even better, your copy is free when you click the link below. Fair warning: This report is brand new and may not be available forever. Click the link below to be among the first investors to get access to this timely, important new research!

The names of these top 3 dividend bets are all included. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies move – we may be forced to remove this report.

Click here to claim your free copy right now!

More reading

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED and Transurban Group. The Motley Fool Australia has recommended National Storage REIT. 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