If you’re looking for some generous dividends next year, then I think you ought to consider buying the two ASX dividend shares listed below.
Here’s why I think they are well-positioned to pay generous dividends in FY 2021:
Aventus Group (ASX: AVN)
Aventus is a retail property company which owns a portfolio of 20 large format retail parks across Australia. Although the retail industry is a difficult place to be right now, I’m optimistic that Aventus will be less impacted by the pandemic than many of its peers due to its high weighting towards everyday needs. This includes leases to The Good Guys, Officeworks, Bunnings, and Aldi.
Furthermore, I believe its portfolio is well positioned for the longer term because of low vacancy rates, sustainable rents, low expenditures, and its ability to re-mix tenants. I’m expecting a distribution of at least 16 cents per unit in FY 2021. Based on the current Aventus share price, this represents a forward ~7.8% distribution yield
Dicker Data Ltd (ASX: DDR)
A second ASX dividend share I would buy for income in 2021 is Dicker Data. It is Australia’s leading locally owned and operated distributor of IT hardware, software, cloud, and Internet of Things solutions for reseller partners. It has been growing its sales, profits, and dividends at a consistently solid rate over the last few years.
Pleasingly, this positive form is continuing in FY 2020 despite the pandemic. Dicker Data recently released a first half update which revealed exceptionally strong profit growth. In light of this, management advised that it plans to lift its full year dividend by 31% to 35.5 cents per share. This represents a very attractive 4.6% fully franked dividend yield. Given its positive outlook, I expect further growth in its dividend in FY 2021. This could make it one of the best dividend shares to buy right now.
These 3 stocks could be the next big movers in 2020
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More reading
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- 3 ASX dividend shares offering generous yields
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- 2 ASX dividend shares for income investors to buy right now
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. 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.
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