If you’re looking to add a few new dividend shares to your portfolio, then the two listed below could be top options this month.
Both these ASX shares offer generous yields and look well-placed to continue paying dividends in 2020 despite the crisis. Here’s why I think they are in the buy zone right now:
Aventus Group (ASX: AVN)
Aventus is a retail property company which owns a total of 20 large format retail parks across Australia. While retail property is going through a difficult time right now because of the pandemic, Aventus looks better positioned that most. This is because its rental income has a high weighting towards everyday needs, which have been largely unaffected by the crisis.
Goldman Sachs is very positive on the company and has forecast a ~17.3 cents per unit distribution in FY 2021. Based on the current Aventus share price, this equates to a very generous forward ~8.1% distribution yield. Overall, I think this could make Aventus a dividend share to buy right now.
Telstra Corporation Ltd (ASX: TLS)
Another dividend share to consider buying is Telstra. After years of declining earnings and dividend cuts, I’m confident the tide is now turning for this telco giant. This is due to a combination of the NBN headwind easing, rational competition returning, and the material cost cutting from its T22 strategy.
All in all, I believe this has put Telstra in a position to generate sufficient free cash flow in the coming years to maintain its 16 cents per share fully franked dividend. After which, I’m optimistic that it won’t be long until the company returns to growth at long last. For now, based on the latest Telstra share price, it offers investors an attractive fully franked 4.6% dividend yield.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of June 30th
More reading
- 3 safe and strong ASX dividend shares to buy during the pandemic
- Why I would buy Telstra and these ASX dividend shares
- These ASX dividend shares will help you beat low interest rates
- a2 Milk and 1 other quality ASX share to buy right now
- ASX 200 Weekly Wrap: Rocketing BNPL shares fail to stop ASX 200 slide
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia has recommended AVENTUS RE UNIT. 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 Buy Telstra and this ASX dividend share for income appeared first on Motley Fool Australia.
from Motley Fool Australia https://ift.tt/2WAAiqb
Leave a Reply