With the base interest rates on savings accounts as low as 0.05%, it is almost impossible to generate a sufficient income from them.
But don’t worry, because there are a number of quality dividend shares on offer on the Australian share market to save the day.
Two that I would buy are listed below:
Dicker Data Ltd (ASX: DDR)
The first ASX dividend share to consider buying is Dicker Data. I think the leading wholesale distributor of computer hardware and software across the ANZ region is a great option. This is due to its strong market position, growing vendor agreements, positive tailwinds, and new distribution centre. The latter gives the company significant room to expand its operations and boost its revenue growth once complete.
Another positive is the way the company has been able to continue its growth during the pandemic. At a time when many companies are struggling, Dicker Data recently reported half year profit before tax growth of 30.4% to $42 million. This puts it on course to deliver on its target of lifting its dividend by 31% to 35.5 cents per share this year. Based on the current Dicker Data share price, this represents a generous fully franked 4.75% dividend yield. It is also worth noting that an insider has been buying shares this week. The company’s COO, Vladimir Mitnovetski, picked up $37,500 worth of shares on Monday. Judging by this purchase, he sees value in its shares at this level.
Rural Funds Group (ASX: RFF)
Another ASX dividend share I would buy is Rural Funds. This agriculture-focused property group has been growing its distribution consistently each year for some time. Pleasingly, it looks well-positioned to continue doing so for the foreseeable future. This is thanks to its high quality portfolio of assets that have long term tenancy agreements and built in rental increases.
At the last count the company’s weighted average lease expiry was almost 11 years. I believe this gives it great visibility on its future earnings and means its distribution growth looks very secure. In FY 2021 management is intending to grow its distribution by 4% to 11.28 cents per share. Based on the latest Rural Funds share price, this equates to a 5.2% yield.
Man who said buy Kogan shares at $3.63 says buy these 3 ASX stocks 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.*
In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.
Find out the names of our 3 Post COVID Stocks – For FREE!
*Returns as of 6/8/2020
More reading
- Buy these ASX dividend shares if the RBA cuts rates
- Beat low interest rates with Coles and this ASX dividend share
- Are ASX banks or miners buys for dividends?
- This ASX-listed company makes $5.7 million per employee
- Will the RBA keep the cash rate on hold for 3 more years?
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 RURALFUNDS STAPLED. 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 2 high quality and growing ASX dividend shares appeared first on Motley Fool Australia.
from Motley Fool Australia https://ift.tt/2ELBwZG
Leave a Reply