It certainly has been a difficult year for income investors. The cash rate is at a record low of 0.25% and many of the most popular dividend shares have either deferred or cancelled their dividends.
The good news is that despite this, it is still possible to earn a decent income this year on the share market.
This is thanks to a number of dividend-paying companies that are well-placed to continue their growth in 2020 despite the pandemic.
Two safe dividend shares I would buy today for income are listed below:
Dicker Data Ltd (ASX: DDR)
The first dividend share to consider buying right now is Dicker Data. I’ve been very impressed with the way the company has continued to perform strongly this year despite the pandemic. Last month it revealed that its first quarter profits grew 36.3% on the prior corresponding period to $18.4 million. This was driven partly by increasing demand for working at home software and hardware. The company also revealed plans to increase its fully franked dividend by 31% to 35.5 cents per share in FY 2020. This represents a 5% fully franked dividend yield which will be paid in quarterly instalments.
Rural Funds Group (ASX: RFF)
Another good option for income investors could be this agriculture-focused property group. Rural Funds owns a large number of assets across several agricultural industries. These assets are of a high quality and are tenanted on long term agreements by many of the largest food producers in Australia. In light of this, I believe Rural Funds is well-positioned to continue growing its distribution at a consistently solid rate for a long time to come. In FY 2021 the company intends to lift its distribution to 11.28 cents per share. This works out to be a forward 5.9% distribution yield.
NEW: Expert names top dividend stock for 2020 (free report)
When our resident dividend expert Edward Vesely has a stock tip, it can pay to listen. After all, he’s the investing genius that runs Motley Fool Dividend Investor, the newsletter service that has picked huge winners like Dicker Data (+92%), SDI Limited (+53%) and National Storage (+35%).*
Edward has just named what he believes is the number one ASX dividend stock to buy for 2020.
This fully franked “under the radar” company is currently trading more than 24% below its all time high and paying a 6.7% grossed up dividend
The name of this dividend dynamo and the full investment case is revealed in this brand new free report.
But you will have to hurry — history has shown it can pay dividends to get in early to some of Edward’s stock picks, and this dividend stock is already on the move.
See the top dividend stock for 2020
*Returns as of 7/4/20
More reading
- Do you have $3,000 to invest in these 3 top ASX dividend shares?
- Why Dicker Data, Medibank, Mesoblast, & Orora are dropping lower
- This ASX dividend share is the latest to raise capital amid COVID-19
- Westpac tips the cash rate to stay at 0.25% until the end of 2023
- Why this stock is retiree’s dream ASX share for 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 Dicker Data Limited and RURALFUNDS STAPLED. 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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