Good value ASX dividend shares are hard to find. With the August earnings season nearly upon us, let’s take a look at which ASX shares are worth considering right now.
3 ASX dividend shares I like in July
Right at the top of the list is Commonwealth Bank of Australia (ASX: CBA).
CommBank has long been a blue-chip ASX dividend share, churning out multi-billion-dollar profits and paying consistent dividends to shareholders.
All of that has changed thanks to the coronavirus pandemic in 2020.
The Australian Prudential Regulation Authority (APRA) wanted banks to reduce their dividend payments amid fears over liquidity and capital adequacy.
With APRA announcing a review of that advice, and the economy delicately poised for recovery, Commonwealth Bank could maintain its strong ASX dividend status.
If bad debts remain low and the bank can protect its net interest margin, we could see a small CommBank dividend announced in August.
Other than the ASX banks, I like the look of JB Hi-Fi Limited (ASX: JBH) right now. The JB Hi-Fi share price is up 16.5% this year despite challenging conditions for Aussie retailers.
Much of JB Hi-Fi’s share price growth has been due to strong sales in March and April.
With plenty of cash, and arguably limited internal reinvestment, JB Hi-Fi could be a strong ASX dividend share this year.
JB Hi-Fi shares are currently yielding 3.4% but I’d be keeping an eye on its 17 August results.
My final ASX dividend share to watch is Transurban Group (ASX: TCL). In my books, Transurban is more of a medium to long-term prospect.
Traffic numbers on its toll roads have been hit hard by coronavirus restrictions. However, that is starting to pick up again which could be good news for the Aussie infrastructure group.
Whilst we’ve seen a shift towards working from home, we’re also seeing a move away from public transport. This means FY2021 and FY2022 could be good ones for Transurban.
I’d tip Transurban’s distributions to dip lower this year. However, if you’re a buy and hold investor, I still think its a good long-term ASX dividend share.
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Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Transurban Group. 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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