3 excellent ASX dividend shares to buy in May

A new month is here, so what better time to consider some new additions to an income portfolio.

But which ASX dividend shares could be worth buying this month? Let’s take a look at three that stand out as top picks for income investors:

Charter Hall Retail REIT (ASX: CQR)

The first ASX dividend share to look at is Charter Hall Retail REIT.

This real estate investment trust owns a portfolio of convenience-based retail properties. These are not the large discretionary shopping centres that rely heavily on fashion and luxury spending. Instead, the portfolio is focused on properties anchored by supermarkets and everyday retailers.

That distinction is important. People still need groceries, pharmacy products, and essential services regardless of the broader economic backdrop. This can make convenience retail more resilient than some other areas of commercial property.

Charter Hall Retail REIT also benefits from long leases and a tenant base that includes major supermarket operators. This provides a level of rental visibility, which is important for income generation.

With its focus on essential retail property, Charter Hall Retail REIT offers dividend exposure tied to everyday consumer spending rather than big-ticket purchases.

Rural Funds Group (ASX: RFF)

Another ASX dividend share worth considering in May is Rural Funds Group.

It is a property group with exposure to agricultural assets. Its portfolio includes farmland and related infrastructure leased to operators across different agricultural sectors.

This gives it a different income profile from traditional office, retail, or industrial property. Rental income is backed by agricultural land, which can provide diversification away from more common property exposures.

The appeal of Rural Funds is that it gives investors access to farmland without having to own or operate farms directly. The group collects rent from tenants, while the underlying assets remain tied to long-term demand for food and agricultural production.

Agriculture can still be affected by weather, commodity prices, and operating conditions. But the leased structure gives Rural Funds a clearer income model than direct farming exposure.

For investors seeking income from real assets, Rural Funds brings something different to the ASX dividend landscape.

Transurban Group (ASX: TCL)

A third ASX dividend share that could be a top pick for income investors is Transurban Group.

It operates toll roads in Australia and North America. The company’s assets sit in major urban corridors where traffic demand is supported by population growth, commuting, freight, and airport access.

Traffic volumes can fluctuate, particularly during weaker economic periods or disruptions. But over longer periods, urban growth and congestion tend to support demand for well-located road infrastructure.

With a portfolio of large-scale toll roads and exposure to long-term population growth, Transurban arguably remains one of the ASX’s most attractive income shares.

The post 3 excellent ASX dividend shares to buy in May appeared first on The Motley Fool Australia.

More reading

• How I’d invest $2,000 in high-yield ASX 300 shares
• How to become a millionaire on a $60,000 salary
• 3 ASX dividend stocks I’d buy if I were a retiree
• $250,000 to invest for passive income? Here’s how I would build a portfolio
• Is it time for investors to turn back to defensive ASX shares?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Transurban Group. The Motley Fool Australia has positions in and has recommended Charter Hall Retail REIT, Rural Funds Group, and Transurban Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.