If you’re looking to invest in dividend shares, then I think the three listed below would be great options.
This is because, during these uncertain times, these companies look well-placed to continue paying their dividends as normal.
Here’s why I would buy them for income:
Rural Funds Group (ASX: RFF)
Thanks to the quality of its portfolio and long term tenancy agreements, this agriculture-focused property group remains well-positioned to continue growing its distribution during the pandemic and beyond. Rural Funds recently reaffirmed its distribution guidance of 10.85 cents per share in FY 2020 and then 11.28 cents per share in FY 2021. This equates to yields of 5.85% and 6.1%, respectively.
Telstra Corporation Ltd (ASX: TLS)
Another option to consider is Telstra. I think the telco giant is a great income option due to its generous yield and defensive qualities. The latter has been on show in FY 2020, with Telstra one of only a handful of companies that has been able to reaffirm its guidance. I believe this guidance positions the company well to maintain its 16 cents per share dividend this year. This equates to a fully franked 5.15% dividend yield. And with its headwinds easing and T22 strategy bearing fruit, I suspect a return to growth could be just a couple of years away.
Wesfarmers Ltd (ASX: WES)
A final dividend share to buy could be conglomerate Wesfarmers. It is the company behind the likes of Bunnings, Kmart, Catch, and a wide range of industrial and chemical businesses. It also has a sizeable cash balance which looks likely to fund acquisitions in the near future. Combined, I believe Wesfarmers has a solid and diverse business which is likely to deliver growth in earnings and dividends whatever economic cycle we are in. At present I estimate that its shares offer a FY 2021 dividend yield of approximately 4%.
And here is another dividend share which looks well-positioned to grow strongly during the pandemic. This could make it a must buy for income investors..
NEW: Expert names top dividend stock for 2020 (free report)
When our resident dividend expert Edward Vesely has a stock tip, it can pay to listen. After all, he’s the investing genius that runs Motley Fool Dividend Investor, the newsletter service that has picked huge winners like Dicker Data (+92%), SDI Limited (+53%) and National Storage (+35%).*
Edward has just named what he believes is the number one ASX dividend stock to buy for 2020.
This fully franked “under the radar” company is currently trading more than 24% below its all-time high and paying a 6.7% grossed-up dividend.
The name of this dividend dynamo and the full investment case is revealed in this brand new free report.
But you will have to hurry — history has shown it can pay dividends to get in early to some of Edward’s stock picks, and this dividend stock is already on the move.
More reading
- 2 ASX shares I plan to hold til I’m 100
- Macquarie picks the best stocks to buy for the post COVID-19 rebound
- 2 ASX 50 shares for retirees to buy right now
- Forget term deposits and buy these top ASX dividend shares
- 2 ASX shares I would buy for growth and income
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 Telstra Limited. The Motley Fool Australia owns shares of Wesfarmers 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 post 3 safe and strong ASX dividend shares to buy right now appeared first on Motley Fool Australia.
from Motley Fool Australia https://ift.tt/2WKi45J
Leave a Reply