Looking to bolster your portfolio with ASX dividend shares? Then I would suggest you look at the ones listed below.
I think their generous yields make them great options in this low interest rate environment. Here’s why:
Aventus Group (ASX: AVN)
The first ASX dividend share I would suggest investors buy is Aventus. While you might think that retail property isn’t a great place to invest right now, it is worth noting that certain areas are performing better than others. Fortunately, Aventus is one of the industry’s positive performers thanks to its focus on large format retail parks. It owns a total of 20 centres across Australia, which are home to many of the largest retailers the country has to offer.
And thanks to its relatively high weighting towards every day needs via tenancies with ALDI, Bunnings, Officeworks, and The Good Guys, the company has been relatively unaffected by the pandemic. It recently released its full year results and revealed a 4.2% increase in funds from operations (FFO) to $100 million. It also reported solid rent collections of 87% through the COVID-19 period and a high occupancy rate of 98%. I expect this positive form to continue over the coming years and believe it is well-positioned to deliver another solid result in FY 2021. Based on the current Aventus share price, I estimate that it offers a 5.1% FY 2021 dividend yield.
Telstra Corporation Ltd (ASX: TLS)
Another ASX dividend share to consider buying is this telco giant. I think Telstra is one of the best dividend shares to buy on the ASX right now. This is due to its defensive qualities, positive long term outlook (post-pandemic), and its very attractive valuation.
And while there is speculation it will have to trim its dividend down to 12 cents per share in FY 2021, I’m optimistic this won’t be the case. But if it is, it is worth noting that its shares will still provide an attractive dividend yield. Based on the current Telstra share price, a 12 cents per share dividend will provide a fully franked 4.2% yield. And if it shifts its dividend policy to allow it to maintain its 16 cents per share dividend, it will offer a forward 5.6% yield. I think both make it worth considering.
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More reading
- 2 ASX dividend shares with yields over 5% today
- 2 fantastic ASX 50 shares I would buy today
- 3 top ASX shares I would love to buy this September
- UBS picks the best and worst ASX stocks from the reporting season
- Should you buy Telstra and these beaten down ASX shares?
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. 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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