ASX dividend shares have had a rollercoaster ride in 2020. Some of the highest paying income shares have been smashed as coronavirus concerns have taken hold.
However, that doesn’t mean there aren’t good buying opportunities on the market. Here are 3 ASX dividend kings I think are worth buying and holding forever.
3 ASX dividend shares to buy and hold forever
There are still plenty of uncertain times ahead. No one knows just what the economy will look like by the end of the year, let alone 10 years into the future. As such, I think some defensive exposure in your portfolio could come in very handy.
I like the look of Coles Group Ltd (ASX: COL) shares at the moment. Coles looks to be a top ASX dividend share given its non-cyclical earnings and 2.78% dividend yield. Of course, dividend yields aren’t necessarily stable or reliable at the moment. Still, that doesn’t change the fact that Coles’ earnings are likely to be more stable than most of its ASX 200 peers.
Another ASX dividend share I believe to be in the buy zone is BHP Group Ltd (ASX: BHP). At the time of writing, BHP shares are paying an attractive 6.75%, now that the share price has fallen 18.94% lower in 2020. The mining sector could be vulnerable to the impact of COVID-19 as international trade slows down and demand for iron ore subsides.
However, I think the technical environment isn’t too bad. China’s economy is picking up pace again and the Australian Government could look to infrastructure to kickstart our own economy. On top of that, the Aussie dollar has slumped lower in 2020 which could make exports like iron ore more attractive.
My final ASX dividend share to buy and hold forever is Commonwealth Bank of Australia (ASX: CBA). ASX bank shares are under pressure at the moment with significant impairments and soft earnings. However, CBA remains an important pillar of the Aussie economy and I think it will continue to churn out consistent profits in years to come.
Bank dividend cuts have spooked some investors, but given CBA shares are down 24.73% in 2020, I think they could be a long-term bargain buy right now.
If you’re looking for the next ASX dividend king of 2020, you don’t want to miss out on today’s top pick!
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More reading
- UBS picks the real ASX winners from the COVID-19 grocery boom
- ASX 200 sinks 1.3%: Big four banks drag ASX lower & Altium issues sales warning
- 3 safe and strong ASX dividend shares to buy today
- 3 cheap ASX 200 shares for value investors
- These 3 ASX 200 retail shares are absolutely thriving right now
Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET. 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.
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