If you’re looking to invest in ASX dividend shares, then I think the ones below could be quality options.
All three have strong businesses and offer investors generous dividends. Here’s why I would buy them next week:
BWP Trust (ASX: BWP)
The first ASX dividend share to buy is BWP. It is a real estate investment trust which invests in and manages commercial properties throughout Australia. The majority of its properties are leased to hardware giant Bunnings. Given the quality of the Bunnings business, I believe the risk of rental defaults is minimal. Especially considering that Bunnings is owned by Wesfarmers Ltd (ASX: WES), which also owns a sizeable stake in BWP. Overall, I believe BWP is well-placed to grow its distribution at a solid rate over the next decade. At present I estimate that it offers investors a 4.8% yield.
Fortescue Metals Group Limited (ASX: FMG)
If you’re not averse to investing in the resources sector, then I think Fortescue could be a great ASX dividend share to own. Spot iron ore prices have remained strong throughout the pandemic and last week smashed through the US$100 a tonne mark. This bodes well for Fortescue and its low cost operations and improving grades. And given the strength of its balance sheet, it also bodes well for dividends this year and next. Predicting its dividend yield is difficult, but I believe it is safe to say it will be at least 6% in FY 2021.
Macquarie Group Ltd (ASX: MQG)
A final ASX dividend share to consider buying is Macquarie. I like the investment bank due to the quality of its operations and its talented management team. Another positive is the diversity of its earnings. This diversity means Macquarie can often thrive when the big four banks are struggling. And while the pandemic will inevitably weigh on its performance in the near term, I believe it will bounce back very strongly once the crisis passes. I estimate that its shares offer investors a partially franked 4.2% FY 2021 dividend yield.
And below is another dividend share which looks well-positioned to grow strongly over the next decade. This could make it a must buy for income investors..
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More reading
- What selling ASX shares means at tax time
- What to watch on the ASX 200 next week
- 2 ASX shares to buy for strong retirement income
- Is the Fortescue share price under threat from a potential multi-million dollar earnings hit?
- Should you ever buy ASX shares at an all-time high?
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group 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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