If you are looking to add some dividend shares into your portfolio, then you might want to consider the two listed below.
Both of these ASX dividend shares offer generous yields which smash the interest rates currently being offered on savings accounts and term deposits. Here’s why I like them:
Dicker Data Ltd (ASX: DDR)
The first dividend share I would buy is this wholesale distributor of computer hardware and software. Dicker Data has consistently grown its dividend at a solid rate over the last few years and this trend will continue in FY 2020. During the first half, Dicker Data continued to experience strong demand for its offering. So much so, its half year revenue broke through the $1 billion level for the first time. As a result of this, the company advised that it plans to increase its dividend by 31% to 35.5 cents per share this year. Based on the current Dicker Data share price, this represents an attractive fully franked 4.7% dividend yield.
National Australia Bank Ltd (ASX: NAB)
If you don’t have exposure to the banking sector, then I think NAB could be worth considering. The banking sector has come under significant pressure this year due to the impact of the pandemic and the spike in bad debts that this is likely to cause. While a decline in the NAB share price was appropriate, I think the selling has been overdone and has left the banking giant’s shares trading at a very attractive level. Especially for income investors on the lookout for a source of income. Based on the latest NAB share price, I estimate that the bank’s shares currently offer investors a generous fully franked ~5% FY 2021 dividend yield. This is significantly better than the interest rates you’ll get on its savings accounts and term deposits.
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
- ASX 200 rises 0.3%, investors bet on Tabcorp
- One leading investment bank predicts CBA won’t pay a final dividend
- Dicker Data share price surges 6% on strong half year update
- Why I would buy these fully franked ASX dividend shares
- ASX 200 drops 1.1%: Big four banks fall, Resolute rockets, Afterpay tumbles
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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