I continue to believe that ASX dividend shares are the best way for investors to generate an income in the current low interest rate environment.
Luckily, there are plenty of quality options for investors to choose from right now.
Two that I would buy today are listed below. Here’s why I like them:
BWP Trust (ASX: BWP)
The first ASX dividend share to consider buying is BWP. It is a real estate investment trust (REIT) that invests in and manages commercial assets across Australia. The majority of these assets are leased to home improvement giant, Bunnings Warehouse.
Due to the strength of the Bunnings business, and also the fact that the retail giant is owned by major BWP shareholder Wesfarmers Ltd (ASX: WES), I believe the company is in a strong position to grow its income and distribution at a consistent rate over the next decade. Based on the current BWP share price, I estimate that it offers investors a forward 4.4% yield.
Dicker Data Ltd (ASX: DDR)
Another dividend share to consider buying is Dicker Data. It is a leading wholesale distributor of computer hardware and software across the ANZ region. I’m a very big fan of the company due to its strong market position, growing vendor agreements, positive industry tailwinds, and its new distribution centre. Once the latter is constructed it will give Dicker Data significant room to expand its operations and boost its revenue.
Another positive is the way the company has been performing during the pandemic. For the first half of FY 2020, Dicker Data reported a 30.4% increase in half year profit before tax to $42 million. This means it is on course to lift its dividend to 35.5 cents per share this year. Based on the current Dicker Data share price, this equates to a fully franked 4.5% dividend yield.
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More reading
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- Where to invest your Telstra (ASX:TLS) dividends
- Why retirees should buy these safe and strong ASX dividend shares
- 2 high yield ASX dividend shares to buy this week
- Why Dicker Data, Harvey Norman, Rhipe, & Senex shares are pushing higher
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 owns shares of Wesfarmers 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.
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