Australia Markets close in 2 hrs 8 mins

Why it could be time to buy Telstra and these ASX dividend shares

James Mickleboro
Piggy bank chalk board

Although it is looking less likely that there will be another cash rate cut in 2019, the market continues to expect one in early 2020.

This will be good news for borrowers, but not so for savers and income investors.

However, don’t worry if you’re in the latter group. Because the Australian share market is home to a large number of dividend shares offering generous yields.

Three to consider buying this week are listed below:

National Australia Bank Ltd (ASX: NAB)

If you have room in your portfolio for a bank share, then I think NAB would be worth considering this week. Whilst the last couple of years have been tough, I believe its outlook is improving. Especially given signs that the housing market is going to rebound in 2020. If this happens, it could lead to solid mortgage loan growth and support its bottom line and dividend. I estimate that its shares currently offer a fully franked 5.9% forward dividend yield.

Stockland Corporation Ltd (ASX: SGP)

Another dividend share to consider is this diversified Australian property company. Stockland owns, manages and develops retail centres, workplace and logistics assets, and residential and retirement communities. This morning the company released a first quarter update which revealed that it has started the year strongly. In light of this, management continues to expect to declare a distribution of 27.6 cents per unit in FY 2020. This works out to be a forward 6% distribution yield. 

Telstra Corporation Ltd (ASX: TLS)

A final share for income investors to consider is Telstra. I’ve been impressed with the progress of its T22 strategy and believe it will make Telstra a much stronger company. In addition to this, the NBN rollout is nearing completion. Which means it may not be too long before the company returns to growth again. As a result, I think now would be a good time to consider a patient investment in its shares. Telstra currently provides an estimated 4.5% forward fully franked dividend yield.

The post Why it could be time to buy Telstra and these ASX dividend shares appeared first on Motley Fool Australia.

And here are three more top dividend shares that Edward Vesely has just rated as must buys for 2020.

Top 3 Dividend Shares To Buy For 2020

When Edward Vesely -- our resident dividend expert -- has a stock tip, it can pay to listen. With huge winners like Dicker Data (up 147%) and Collins Food (up 105%) under his belt, Edward is building an enviable following amongst investors that are planning for retirement.

In a brand new report, Edward has just revealed what he believes are the 3 best dividend stocks for income-hungry investors to buy now. All 3 stocks are paying growing fully franked dividends giving you the opportunity to combine capital appreciation with attractive dividend yields.

Best of all, Edward’s “Top 3 Dividend Shares To Buy For 2020” report is totally free to all Motley Fool readers.

Click here now to access this free report.

More reading

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Telstra 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