Top-quality ASX shares with strong dividend yields can be hard to come by in 2020. Many reliable dividend payers like the big banks have slashed dividends to conserve capital.
However, the recent bear market has hit many S&P/ASX 200 Index (ASX: XJO) constituents hard. That means that dividend yields have surged higher and many ASX dividend shares could be in the buy zone.
3 top ASX dividend shares
Fortescue Metals Group Limited (ASX: FMG) is one of those ASX dividend shares right now.
The Fortescue share price has rocketed 72.6% higher since 9 March, but is still yielding a tidy 6.75% at the time of writing. With iron ore prices on the rise, Fortescue could be a bargain given its capital growth and income prospects.
Fortescue isn’t the only top ASX dividend share trading for a good price today. The Harvey Norman Holdings Limited (ASX: HVN) share price is trading at $3.54 per share with a 5.93% dividend yield.
Harvey Norman recently announced a 6 cents per share special dividend for shareholders. This came after a strong sales period during the coronavirus shutdown, as Aussies spent big on their home improvements and office setups.
Sticking with the retail theme, Scentre Group (ASX: SCG) is another ASX dividend share that’s worth watching, with a current dividend yield of 8.39%.
Scentre shares have been on a rollercoaster ride in 2020 as investors try to work out the impact on real estate investment trusts (REITs) from the pandemic restrictions.
Scentre owns and operates Westfield shopping centres across Australia and New Zealand. That means what is good for the retail sector is good for Scentre.
With restrictions starting to ease, we could see retail stores reopen for business and earnings bounce back. That means more stable tenants for Scentre, which could make it a strong dividend share in 2021 and beyond.
Foolish takeaway
These are just a few examples of top ASX dividend shares as we start this new week. Of course, dividend yields can be misleading right now, but I think the long-term picture is still good for many of these companies.
For more ASX shares to add to the buy list, check out these 5 under $5 today!
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
- Gold mining shares – these are the facts and myths
- Is the Transurban share price a secret bargain?
- 50% off: these ASX 200 shares are dirt cheap today
- ASX winners and losers from last week
- Where to invest $10,000 into ASX 200 shares immediately
Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Scentre Group. 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 ASX shares with 6% dividend yields to buy for income appeared first on Motley Fool Australia.
from Motley Fool Australia https://ift.tt/2XZjaLJ
Leave a Reply