With June almost upon us (insert obligatory comment about how fast the year is flying by), it’s a great opportunity to examine our ASX share portfolios, and particularly our dividend shares.
2020 has been a topsy-turvy year so far for many reasons, with the shifting paradigm for ASX dividend shares part of the story.
Former ASX dividend share stalwarts like the banks are now dividend cutters. ‘Safe’ ASX shares like Transurban Group (ASX: TCL) are leaving income investors hanging.
So if I wanted to top up my portfolio’s income potential this June, here are 3 ASX shares I would use to do so:
Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)
‘Soul Patts’ is one of the best dividend shares on the ASX (in my opinion) and also one of the only shares I trust to keep its dividend flowing this year. In fact, I believe it to be ASX dividend royalty. Soul Patts has paid out a dividend every year of its existence (which goes back to 1903). Not only that, but this company has also increased its dividend payments every year for the last 20 years.
Soul Patts’ large stakes in ASX shares like TPG Telecom Ltd (ASX: TPM) and Brickworks Limited (ASX: BKW) pour cash into the company’s coffers, whilst also giving it broad exposure to the Australian economy. Thus, if I had to choose a dividend share to buy this June, Soul Patts would be at the top of my list.
WAM Research Limited (ASX: WAX)
WAM Research isn’t too far behind though. This is a Listed Investment Company (LIC) that invests in small and mid-cap ASX shares like Tassal Group Limited (ASX: TGR) and City Chic Collective Ltd (ASX: CCX).
This company has proven its know-how, in my view, having delivered an average annual return of 13.4% over the past 10 years. On current prices, WAM Research shares are offering a trailing yield of 6.99%. Although WAX shares usually trade at a premium to their underlying Net Asset Value, I believe this hefty yield more than makes up for this fact.
SPDR S&P Global Dividend Fund (ASX: WDIV)
My last ASX dividend share for June is actually an exchange-traded fund (ETF). WDIV invests in dividend-paying companies from beyond our shores, specifically those which have held or increased their dividends for 10 years or longer. Its holdings are balanced fairly evenly between American, Canadian and Japanese companies, with the United Kingdom, France, Hong Kong and Australia also represented.
Thus, I think this ETF can provide some great global exposure and diversification to an ASX dividend portfolio. Some of its top holdings include Freenet AG, Enagas, Japan Tobacco and our own AGL Energy Limited (ASX: AGL). WDIV offers a trailing yield of 6.01%.
For another top ASX dividend share, take a look at the report below!
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More reading
- What would $50,000 invested in the ASX 200 a decade ago be worth today?
- Have $4,000? Invest in these 4 ASX shares right now
- Should you ever buy into an ASX IPO?
- 3 ASX dividend shares to diversify your income
- 2 ASX shares that are absurdly cheap right now
Motley Fool contributor Sebastian Bowen owns shares of SPDR S&P Global Dividend Fund, WAM Research Limited, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended Brickworks and Washington H. Soul Pattinson and Company 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.
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