Are you looking for a way to beat low interest rates in 2020? Then you might want to take a look at the ASX dividend shares listed below.
They both offer attractive yields and appear well-positioned for growth over the coming years. Here’s why I would buy them:
Dicker Data Ltd (ASX: DDR)
The first ASX dividend share to consider buying this week is Dicker Data. It is a wholesale distributor of computer hardware, software, and cloud solutions to a growing partner base of over 5,500 resellers. Dicker Data distributes a portfolio of products from the world’s leading technology vendors, including Cisco, Citrix, Dell Technologies, Hewlett Packard Enterprise, HP, Lenovo, Microsoft, and other Tier 1 global brands.
The company has been experiencing robust and growing demand for its offering in recent years. This was particularly the case in the first half of FY 2020, when Dicker Data delivered record sales and profits. Pleasingly, management appears confident that this form will continue in the second half and expects to increase its full year dividend materially. It is guiding to a 31% increase in its dividend to 35.5 cents per share. Based on the latest Dicker Data share price, this equates to a fully franked 4.1% yield.
Vitalharvest Freehold Trust (ASX: VTH)
Another ASX dividend share I would buy is agricultural property company Vitalharvest. It provides investors with access to quality agricultural property assets with exposure to the nutritious and healthy food trend. Its assets comprise four berry properties and three citrus properties, and count horticulture giant Costa Group Holdings Ltd (ASX: CGC) as a tenant.
I believe the company’s exposure to healthy eating trends means that these properties are well-placed for rental growth in the coming years. I expect this to underpin solid earnings and distribution growth over the next decade. For now, based on the current Vitalharvest share price, I estimate that it offers investors a forward ~6% distribution yield.
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Returns As of 6th October 2020
More reading
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- Forget term deposits and buy these ASX dividend shares instead
- My 3 favourite ASX dividend shares to buy this year
- 2 quality ASX dividend shares to buy before the RBA meeting
- 3 alternative ASX shares to buy for defensive income
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended COSTA GRP FPO and Dicker Data 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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