Are you looking to add a few dividends shares to your portfolio? Then take a look at the three shares I have picked out below.
All three offer above-average yields and look well-placed to grow their dividends over the coming years. They are as follows:
Aventus Group (ASX: AVN)
Aventus is a retail property company specialising in large format retail centres across Australia. In total, the company has a portfolio of 20 centres which are home to a diverse tenant base of 593 quality tenancies. These include many of the largest retailers in the country, with a high weighting towards everyday needs. I think this leaves Aventus well-placed for growth over the coming years. For now, Goldman Sachs recently forecast a ~17.3 cents per unit distribution in FY 2021. This equates to a massive forward ~8.1% distribution yield.
Fortescue Metals Group Limited (ASX: FMG)
Another top dividend share I would buy is Fortescue Metals. I think it is a great option because of the high prices that iron ore is commanding at present due to supply disruptions and robust demand. Combined with its improving production grades and low cost operations, Fortescue is currently generating high levels of free cash flow. I expect the majority of this to be returned to shareholders in the form of dividends in FY 2020 and FY 2021. As a result, I estimate that its shares currently provide investors with a forward fully franked dividend of at least 6%.
Macquarie Group Ltd (ASX: MQG)
A third and final ASX dividend share to consider buying right now is Macquarie. I think the investment bank is a great option for investors wanting exposure to the banking sector but are not keen on the big four. This is because it is a very different beast to the big four and generates its revenue from a wide range of channels. And while it won’t be immune from the pandemic, I believe it will bounce back strongly once the crisis passes. This could make it well worth snapping up shares with a long term view. At present, I estimate that its shares provide a partially franked forward yield of 3.9%.
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More reading
- Add some diversity to your portfolio with these quality ETFs
- Top brokers recommending you buy these ASX shares in this market sell-off
- Why the risk of a market correction for the ASX 200 is rising
- Where to invest $10,000 in ASX 200 shares for 2030
- Ready to invest $5,000? I’d buy these ASX dividend shares today
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. 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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