If you’re looking to boost your income by adding a few dividend shares to your portfolio, then the ones listed below could be great options.
Both ASX dividend shares listed below have strong businesses and offer generous yields at current prices. Here’s why I think they are in the buy zone right now:
BHP Group Ltd (ASX: BHP)
I think this mining giant is a top ASX dividend share to buy right now. This is because I believe BHP is well-positioned to pay generous dividends over the next couple of years at least. This is thanks to its world class and low cost operations, its growth opportunities, and its strong balance sheet.
I feel the latter should allow the company to return the majority of its free cash flow to shareholders in the form of dividends. And thanks to the sky high prices that iron ore is currently commanding, this looks likely to be billions of dollars. Based on the current BHP share price, I estimate that the mining giant provides investors with a forward fully franked ~5% dividend yield.
Sydney Airport Holdings Pty Ltd (ASX: SYD)
Another ASX dividend share for investors to consider buying is Sydney Airport. Although its terminals have been a ghost town because of the pandemic, I’m optimistic that this will change in the coming months. And if the current situation in Melbourne doesn’t get out of control, I’m confident the domestic travel market will recover enough in 2021 for it to pay a decent dividend.
At this point, I estimate that the airport operator will pay a dividend in the region of 29 cents per unit next year. Based on the latest Sydney Airport share price, this represents a 5.35% FY 2021 dividend yield.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of June 30th
More reading
- These ASX shares are the winners and losers in the “new normal”
- Top brokers name 3 ASX shares to buy right now
- Rio Tinto share price on watch following broker downgrade
- Why I see good value in the BHP share price today
- Why brokers have just downgraded BHP and these ASX stocks today
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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