Looking to add some ASX dividend shares to your portfolio this week? Then you might want to consider the three listed below.
I believe these three dividend shares are among the best on the local market and could be top options for income investors right now:
BWP Trust (ASX: BWP)
The first ASX dividend share I would buy is BWP Trust. This property trust has a focus on commercial property and is the largest owner of Bunnings Warehouse sites in Australia. It currently has a portfolio of 68 stores leased to the hardware giant. And thanks to the strength of the Bunnings business, the trust appears to have been largely unaffected by the pandemic and continues to collect rent as normal. As a result, it is able to continue paying its distribution as normal this year. Furthermore, given the quality of its tenancies, I feel the trust is well-placed to grow its distribution modestly each year for the foreseeable future. Based on the current BWP share price, I estimate that it offers a generous 4.7% FY 2021 distribution yield.
Rural Funds Group (ASX: RFF)
Another ASX dividend share to consider buying this week is Rural Funds. I’m a big fan of agriculture-focused property group due to the quality and diversity of its assets. Another massive positive is their ultra-long tenancy agreements, which I believe puts Rural Funds in a position to continue growing its distribution during the pandemic and beyond. The company recently reaffirmed its distribution guidance of 10.85 cents per share in FY 2020 and then 11.28 cents per share in FY 2021. Based on the latest Rural Funds share price, the latter equates to a 5.5% yield.
Telstra Corporation Ltd (ASX: TLS)
A final ASX dividend share I would consider buying is Telstra. I think the telco giant is one of the best income options on the local market due to its strong business model, defensive qualities, and attractive dividend yield. In addition to this, I believe its outlook is becoming increasingly positive thanks to its T22 strategy (which includes material cost cutting), the easing NBN headwind, and the arrival of 5G. Combined, I expect this to be enough for Telstra to maintain its current dividend for the foreseeable future. Which, based on the current Telstra share price, equates to a fully franked 4.6% dividend yield.
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More reading
- ASX 200 Weekly Wrap: Blue chip shares pull ASX 200 back over 6,000 points
- 4 ASX shares I’d buy to protect against a recession
- How to create a yearly income of $65,000 in dividends
- 3 ASX shares for growth, income, and value investors to buy right now
- These ASX dividend shares are better than term deposits
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED and Telstra 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.
The post Why you should buy Telstra and these ASX dividend shares for income appeared first on Motley Fool Australia.
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