If you’re looking to add a few dividend shares to your portfolio this week, then I think the ones listed below are worth considering.
Here’s why I think these dividend shares are in the buy zone:
Dicker Data Ltd (ASX: DDR)
The first ASX dividend share to consider investing in is Dicker Data. It is an Australia owned and operated distributor of IT hardware, software, cloud, and Internet of Things solutions. Thanks to a growing number of vendor agreements and strong demand for IT products, Dicker Data has delivered robust earnings and dividend growth over the last few years.
Pleasingly, this trend looks likely to continue in FY 2020. So much so, the company is confident enough to provide dividend guidance of 35.5 cents per share this year. This equates to a 31% increase year on year and represents a fully franked forward 4.6% dividend yield.
Sydney Airport Holdings Pty Ltd (ASX: SYD)
While I wouldn’t be buying Sydney Airport’s shares if you want dividends in 2020, if you can afford to be patient it could be a great option. Australia’s busiest airport isn’t very busy at all right now. The pandemic has led to severe travel restrictions both domestically and internationally. However, the good news is that the domestic market is on the verge of starting its recovery.
Last week Qantas Airways Limited (ASX: QAN) revealed that it is preparing to increase its capacity to upwards of 40% of pre-pandemic levels by the end of July. I expect this to be a big boost to Sydney Airport and could put it in a position to pay a decent dividend in FY 2021. I estimate that it could pay as much as 27 cents per share to shareholders next year, before increasing it to 37 cents per share in FY 2022. This represents a 3.8% yield and a 5.25% yield, respectively.
One trick to potentially generating life-changing wealth from the stock market is to buy early-stage growth companies when their share prices still look dirt cheap.
Motley Fool’s resident tech stock expert Dr. Anirban Mahanti has identified 5 stocks he thinks are screaming buys. And you can buy them now for less than $5 a share!
* Extreme Opportunities returns as of June 5th 2020
More reading
- ASX 200 Weekly Wrap: ASX bulls crash through 6,000 points
- Forget term deposits and buy these high yield ASX dividend shares
- How to turn $20,000 into $275,000 in 10 years with ASX 200 shares
- ASX 200 down 0.35%: UBS upgrades NAB and Westpac, Qantas soars again
- Why Kogan, NAB, Qantas, & Sydney Airport shares are racing higher
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Dicker Data 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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