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Why I wouuld buy NAB and these ASX shares for their dividends

James Mickleboro
NAB bank share price

If you’re looking to generate a passive income in this low interest rate environment, then I think the share market is a great place to do it.

The following three ASX dividend shares offer income investors attractive yields right now:

National Australia Bank Ltd  (ASX: NAB)

If you’re not averse to investing in the banking sector, then I think NAB would be well worth considering. Especially following the sharp pull back in its shares towards the end of 2019. This has left them trading on lower than average multiples and offering a very generous dividend yield. And with the housing market showing signs of improvement, I feel now could be a great time to pick up shares. After factoring in another potential dividend cut in FY 2020, NAB’s shares still offer a sizeable forward fully franked 6.7% dividend yield.

Super Retail Group Ltd  (ASX: SUL)

Super Retail is the retail group behind popular chains such as Macpac, Rebel, and Super Cheap Auto. It has overcome difficult retail trading conditions and delivered solid earnings and dividend growth in recent years. And following a positive start to the new financial year, I feel Super Retail’s strong form can continue again in FY 2020. Based on this, I estimate that its shares offer a forward fully franked 5.1% dividend yield.

Transurban Group  (ASX: TCL)

Another dividend share I would buy is this toll road operator. Due to the increasing number of vehicles escaping congestion by using its toll roads and periodic toll increases, Transurban has been able to grow its distribution at a consistently solid rate over the last decade. The good news is that I expect these positive trends to continue for the next decade. Which, combined with expansions and acquisitions, should support solid income and distribution growth for the foreseeable future. I estimate that Transurban’s shares currently offer a forward 4.1% distribution yield.

The post Why I wouuld buy NAB and these ASX shares for their dividends 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 and Super Retail Group 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