Are you looking to bolster your income with some dividends? Then you might want to consider buying one of the ASX dividend shares listed below.
Here’s why I think they would be top options for income investors:
Dicker Data Ltd (ASX: DDR)
The first ASX dividend share to consider buying is Dicker Data. It is Australia’s leading locally owned and operated distributor of IT hardware, software, cloud and IoT solutions for over 5,500 reseller partners. It distributes a wide suite of products from the world’s leading technology vendors, including Cisco, Citrix, Dell Technologies, Hewlett Packard Enterprise, HP, Lenovo, and Microsoft.
Thanks to an increasing number of vendor agreements and robust demand for information technology products, Dicker Data has been growing its earnings and dividends at a solid rate over the last few years. The good news is that this has continued despite the pandemic and it is on course to deliver a strong full year result in FY 2020. As a result, management intends to lift its fully franked dividend by 31% to 35.5 cents per share this year. Based on the latest Dicker Data share price, this represents an attractive 5% dividend yield.
Telstra Corporation Ltd (ASX: TLS)
Another dividend share that I would buy is Telstra. I believe the telco giant’s medium term outlook is currently looking the brightest it has been in a long time. This is thanks to its T22 strategy, which is cutting costs and simplifying its business, the return of rational competition, and the easing of the NBN headwind.
All of this combined, I believe a return to earnings and dividend growth could be on the cards in the not so distant future. For now, though, I’m confident that the company’s 16 cents per share fully franked dividend is sustainable. Based on the current Telstra share price, this equates to a fully franked 4.75% dividend yield.
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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 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 I would buy Telstra and this ASX dividend share appeared first on Motley Fool Australia.
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