If you have space in your portfolio for some ASX dividend shares, then you might want to consider the two listed below.
Both of these ASX dividend shares offer generous yields which smash the interest rates offered on savings accounts and term deposits. Here’s why I like them:
Dicker Data Ltd (ASX: DDR)
The first ASX dividend share to look at is Dicker Data. It is a wholesale distributor of computer hardware and software in the ANZ region. I’ve been very impressed with the way the company has consistently delivered solid earnings and dividend growth over the last few years. This has been driven by a combination of new vendor agreements, industry tailwinds, and solid demand.
Pleasingly, its growth has accelerated in FY 2020, thanks partly to the pandemic. This has put Dicker Data in a position to deliver a bumper profit result this year. In light of this, the board intends to increase its dividend by 31% to 35.5 cents per share. Which based on the latest Dicker Data share price, represents a 5.1% fully franked dividend yield.
National Australia Bank Ltd (ASX: NAB)
If you don’t have exposure to the banking sector, then you might want to consider buying NAB shares. Although times are hard for the bank right now and a rise in bad debts seems inevitable, I’m optimistic that this is more than priced into its shares following its provisions update. As a result, I think the worst could now be behind the bank and it could be an opportune time to pick up its shares.
This is especially the case if you’re looking for dividends in this low interest rate environment. Based on the latest NAB share price, I estimate that NAB’s shares currently offer investors a generous fully franked 5.1% FY 2021 dividend yield.
Where to invest $1,000 right now
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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.
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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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