If you’re wanting to add some dividend shares to your portfolio this week, then you’re in luck. The Australian share market is home to a number of top options for income investors.
Listed below are two top ASX dividend shares which I think are in the buy zone right now. Here’s why I would buy them:
Aventus Group (ASX: AVN)
The first ASX dividend share that I would suggest income investors consider buying is Aventus. Although retail property shares are having a tough time right now, Aventus appears to have been less impacted than most in the sector. This is because Aventus specialises in large format retail parks and has a reasonably high rental income weighting towards everyday needs. I believe this leaves it better positioned than others in the sector to navigate through the difficult trading conditions. Based on the current Aventus share price, I estimate that it offers an FY 2021 yield of at least 6%.
Fortescue Metals Group Limited (ASX: FMG)
I think Fortescue could be a great option for income investors that aren’t fazed by investing in the resources sector. This is because of the quality of its operations and the high prices that iron ore is commanding at present. These have been caused by supply disruptions and robust demand in China. Given that iron ore prices remain comfortably above US$110 a tonne at present, I believe Fortescue is well-placed to generate high levels of free cash flow in FY 2021. This is likely to be returned to shareholders in the form of dividends. If iron ore prices remain favourable, then, based on the current Fortescue share price, I would expect a forward fully franked dividend of at least 6%.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of June 30th
More reading
- Top ASX dividend shares to buy in August 2020
- Broker sees top returns for iron ore miners BHP and Rio
- Has the ASX 200 finally taken off?
- ASX iron ore miners jump on broker upgrades
- Are ASX lithium shares the next big thing?
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended AVENTUS RE UNIT. 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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