It looks as though interest rates will remain at their low levels for some time to come. In light of this, I continue to believe dividend shares are the best place to earn a passive income right now.
But which ASX dividend shares should you buy? I think these would be top options:
Aventus Group (ASX: AVN)
The first ASX dividend share I would buy is Aventus. It is a retail property company which specialises in large format retail parks. It currently has a total of 20 centres, which are home to a diverse tenant base of 593 quality tenancies. This includes major retailers such as ALDI, Bunnings, Officeworks, and The Good Guys.
This high weighting to major retailers and every day needs has been a real blessing during the pandemic. At a time when many retail property owners are struggling, Aventus released its full year results and revealed a 4.2% increase in funds from operations (FFO) to $100 million. It also reported solid rent collection of 87% through the COVID-19 period and a high occupancy rate of 98%. This allowed it to declare an 11.9 cents per security distribution for the year. Based on the current Aventus share price, this equates to a generous 5.1% yield.
Coles Group Ltd (ASX: COL)
Another great dividend share to own right now could be this supermarket giant. It was a strong performer in FY 2020 and delivered a 6.9% increase in sales to $37.4 billion and a 7.1% lift in net profit after tax to $951 million. Pleasingly, it also revealed that it has started FY 2021 in a positive fashion.
Given its defensive qualities, strong market position, and cost cutting plans, I expect more of the same over the next decade. This could make it a great ASX share for income investors to buy and hold for the long term. Based on the current Coles share price, I estimate that it offers investors a fully franked 3.2% dividend yield in FY 2021.
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More reading
- Reinvest your Coles dividends in these top ASX shares
- ASX giants say cutting staff hours will save jobs
- Forget term deposits and buy these quality ASX income shares
- The latest ASX stocks that brokers just upgraded to “buy”
- Why I would buy Coles and this ASX dividend share today
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET. 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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