It is a challenging time for investors looking for ASX 200 dividend shares that are still paying reasonable dividends. Earnings tailwinds and economic uncertainty has forced many companies to cut dividends or opt to pay none at all. Here are three blue-chip ASX 200 dividend shares with solid cash flows and a history of reliable dividend payments that you could buy for the medium to long term.
1. WAM Capital Limited (ASX: WAM)
WAM Capital is a listed investment company (LIC) that provides investors with exposure to an actively managed diversified portfolio of undervalued growth companies listed on the ASX. The company has more than a decade of stable or increasing dividend payments and currently has a dividend yield of 8.07%.
In the company’s June portfolio update, it cited that its portfolio continued to increase as coronavirus restrictions began easing and the Australian economy showed signs of recovery. Significant contributors to its positive investment portfolio performance included leading Australian healthcare and diagnostics services company Healius Ltd (ASX: HLS), service station operator Viva Energy Group Ltd (ASX: VEA) and Afterpay Ltd (ASX: APT). In my opinion, WAM is not only one of the most reliable and consistent ASX 200 dividend shares, but also does the hard yards for investors with active portfolio management.
2. BHP Group Ltd (ASX: BHP)
Despite getting hit with a broker downgrade, I believe the recent surge in iron ore prices will continue to position BHP as a leading ASX 200 dividend share. The iron ore spot price is currently around its 12-month highs at US$105.59 per tonne which will convert to high margins for Australia’s low cost producers. BHP currently pays fully franked dividends with a yield of 5.70%.
3. Tassal Group Limited (ASX: TGR)
Tassal Group is a diversified seafood producer engaged in the provision of Atlantic salmon and prawns. The company trades at a relatively cheap price-to-earnings (P/E) ratio of just 10.55 and currently pays a dividend yield of 4.89%. I believe Tassal could be a steady, future ASX 200 dividend share, having delivered a compound annual growth rate of 16.7% for revenue and 12.8% for net profit after tax over the past five years. The company sees early positive trends in customer behaviour in a COVID-19 world whereby consumers are more health conscious, want to trust what they are eating and also opt for easy to prepare meal solutions. Salmon and prawns meet such needs as healthy and sustainable proteins and Tassal has the opportunity to help increase seafood’s percentage share of plate.
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Motley Fool contributor Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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