Reliable S&P/ASX 200 Index (ASX: XJO) dividend shares seem few and far between in the current backdrop of the coronavirus pandemic. But amid the instances of deferred payouts, weak earnings and dividend caps occurring in sectors like banks and insurers, here are 3 leading ASX200 dividend shares that I think investors could buy right now.
1. WAM Capital Limited (ASX: WAM)
WAM is a listed investment company with more than a decade of increasing fully franked dividend payments to investors. It provides investors with exposure to an actively managed diversified portfolio of undervalued growth companies listed on the ASX.
In the company’s July investment update, WAM highlighted retail and tech shares as major benefactors to its portfolio. Its holdings in City Chic Collective Ltd (ASX: CCX) and Nextdc Ltd (ASX: NXT) significantly contributed to its investment portfolio outperformance during the month.
WAM currently pays a fully franked dividend yield of 7.60%. I believe its versatile investment portfolio and demonstrated history of paying dividends make it one of the best ASX200 dividend shares to buy right now.
2. BHP Group Ltd (ASX: BHP)
Strong iron ore prices will continue to buoy BHP’s profits and dividends. This month, a surge in Chinese steel demand has pushed iron ore prices to levels comparable to July 2019 when global iron supply took a hit following Vale SA’s dam collapse.
BHP’s full year result for FY20 highlights a stable performance across the board with its EBITDA down 5% to US$22.1bn while underlying basic earnings per share increased by 2% to US$179.2 cents per share.
It announced a final dividend of US$0.55 per share which brings its total payout in 2020 to US$1.20 per share. In an environment where iron ore supply continues to face disruption due to COVID-19, alongside China’s recovering economy, investors can expect BHP to maintain its position as a leading ASX200 dividend share.
3. Tassal Group Limited (ASX: TGR)
Tassal delivered a positive FY20 result on Wednesday despite sales challenges imposed by the pandemic. The company delivered a 23.4% increase in operating EBITDA, a 18.3% increase in statutory NPAT and a final dividend of 9 cents per share. This brings its total dividend for 2020 to 18 cents per share.
Overall, Tassal has successfully executed its growth strategy by increasing its operating efficiencies within salmon production while diversifying into prawns.
In FY21, the company will continue to optimise Tassal-branded salmon sales and reduce cost $/kg. Plans to lift prawn harvest volumes should underpin a material lift in prawn earnings.
Tassal has demonstrated tenacious earnings and a focus on continuous production efficiency. Its strong and reliable earnings make it another worthy ASX200 dividend share to buy today.
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Motley Fool contributor Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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