Although this month’s market selloff has been very disappointing, one positive is that it has pulled down a number of dividend shares to levels that offer attractive yields.
Two ASX dividend shares that I would buy after the selloff are listed below. Here’s why I like them:
Bravura Solutions Ltd (ASX: BVS)
The first ASX dividend share to consider buying is Bravura Solutions. The shares of the provider of software products and services to the wealth management and funds administration industries have fallen over 43% from their 52-week high. As well as weakness in the tech sector, investors have been selling Bravura’s shares after the company warned that earnings could be flat in FY 2021 because of the pandemic.
While this is a touch disappointing, I’m confident its growth will accelerate again once the crisis passes. Especially considering the quality of its offering and its massive market opportunity. In light of this, I think it is worth taking advantage of this pullback by buying its shares today. Based on the current Bravura share price, it offers a 3.25% yield.
People Infrastructure Ltd (ASX: PPE)
People Infrastructure is a leading workforce management company that provides innovative solutions to workforce challenges. It was a very strong performer in FY 2020 despite the pandemic. People Infrastructure delivered a 34.5% increase in revenue to $374.2 million and a 53.3% increase in normalised net profit after tax and before amortisation (NPATA) to $18.4 million.
This strong form allowed the company to declare a fully franked final dividend of 4.5 cents per share. Which brought its full year dividend to 8.5 cents per share for FY 2020. Based on the current People Infrastructure share price, this provides investors with an attractive 3.15% dividend yield. And while trading conditions remain tough in FY 2021, I’m confident it is well-placed to grow its earnings and dividend once again.
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More reading
- 3 quality ASX shares that could provide monster returns
- 2 ASX dividend shares to buy instead of CBA
- 5 things to watch on the ASX 200 on Friday
- ASX 200 Weekly Wrap: Earnings drag ASX back to reality
- Top brokers name 3 ASX shares to buy next week
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Bravura Solutions Ltd. The Motley Fool Australia has recommended People Infrastructure Ltd. 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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