ASX dividend shares are worth a premium right now. Many Aussie companies are slashing their dividends in the August earnings season as the coronavirus pandemic continues to bite.
However, there are still some companies that are as reliable as ever. One that springs to mind is Telstra Corporation Ltd (ASX: TLS).
Telstra hit its earnings guidance and maintained a 16 cents per share (cps) full-year dividend.
Here’s why I like Telstra and 2 more ASX dividend shares after their latest earnings updates.
Telstra and 2 more ASX dividend shares I like
There’s no doubt these are challenging times for Telstra. The Aussie telco hit earnings guidance on cash flow and underlying earnings before interest, tax, depreciation and amortisation (EBITDA).
However, NBN impacts and the ongoing pandemic are also expected to hit FY21 earnings.
But Telstra’s dividend payout policy has been a real strength in recent years. That looks set to continue with the company’s 16 cps dividend representing a ~5% dividend yield based on the current Telstra share price.
Despite some challenges, I think the potential 5G boom and reliable dividend makes Telstra a top ASX dividend share.
It’s not just the telcos that I’m watching. I like the look of Aussie insurer QBE Insurance Group Ltd (ASX: QBE).
QBE reported a modest 4 cps dividend on Thursday despite reporting a US$712 million net loss.
That doesn’t exactly scream top ASX dividend share but I like QBE’s prospects for FY21.
The Aussie insurer reported minimal exposure to the ongoing pandemic. That includes both in direct insurance and its reinsurance exposures.
That 4 cps dividend would represent a yield of 0.73% on the current QBE share price. However, I think the symbolism of a dividend payment in these times is a vote of confidence in future earnings and balance sheet strength.
Finally, the Charter Hall Social Infrastructure REIT (ASX: CQE) is another ASX dividend share on my watchlist.
Shares in the Aussie real estate investment trust (REIT) climbed 11.3% higher this week. That came after a steady full-year result headlined by a 25% jump in net property income and a 16 cps distribution.
I think the ability to maintain steady earnings and pay a dividend make the Charter Hall Social Infrastructure REIT a strong ASX dividend share.
Foolish takeaway
These are just a few of the ASX dividend shares I like from the August earnings season so far.
I’ll be keeping an eye out for more strong income shares to buy in the coming weeks.
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More reading
- Brokers name 3 ASX shares to buy right now
- Brokers just downgraded the Telstra share price and these other ASX 200 stocks
- Is the Telstra dividend in danger? This leading broker thinks it’s safe
- ASX 200 drops 0.7%, Telstra falls 7.7%
- 2 blue chip ASX dividend shares to buy
Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra 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.
The post Telstra and 2 more ASX dividend shares I like in August appeared first on Motley Fool Australia.
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