If you’re looking to add some dividend shares to your portfolio in August, then the two listed below could be great options.
I believe both are well-placed to continue growing their dividends over the coming years despite the tough economic environment. Here’s why I think they are among the best on offer right now:
BWP Trust (ASX: BWP)
The first ASX dividend share to consider buying is BWP. It is a real estate investment trust that invests in and manages commercial assets. These assets tend to be large format retail properties, which are predominantly leased to home improvement giant, Bunnings Warehouse. At the end of FY 2020, its weighted average lease expiry (WALE) stood at 4 years, with 98% of its portfolio leased.
And while this isn’t the longest WALE you’ll find on the ASX, I don’t see Bunnings moving to other properties in a hurry. Especially given how Bunnings is owned by Wesfarmers Ltd (ASX: WES), which also owns ~23.6% of BWP. All in all, I believe BWP is well-placed to grow its income and distribution at a modest and predictable rate over the next decade. Based on this and the current BWP share price, I estimate that it offers a forward 4.6% yield.
Dicker Data Ltd (ASX: DDR)
Another ASX dividend share to consider buying in August is Dicker Data. It is a wholesale distributor of computer hardware and software which has grown its earnings and dividends at a consistently solid rate for many years.
The good news is that this positive trend is continuing in 2020 despite the pandemic. Dicker Data recently released a first half update which revealed very strong profit growth. As a result, management advised that it plans to lift its full year dividend by 31% to 35.5 cents per share. This represents a very attractive 4.7% fully franked dividend yield.
These 3 stocks could be the next big movers in 2020
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More reading
- Why the Wesfarmers share price is too expensive
- Why I would buy Goodman Group and these blue chip ASX shares
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- ASX 200 Weekly Wrap: Surging commodity prices snap ASX 200’s losing streak
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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