If you’re looking for dividends in 2020, you’ll have to look a little harder than normal. The pandemic has led to many dividend favourites deferring or cancelling their payments in FY 2020.
But not all companies have been affected by the pandemic. Some have continued their growth unabated and will be paying dividends as normal this year.
Income investors can still earn a decent income with the dividend shares listed below:
Coles Group Ltd (ASX: COL)
This supermarket operator’s defensive qualities have been on display for all to see in 2020. I believe this demonstrates why it would be a quality long term option for income investors to consider buying right now. In addition to this, its long term earnings and dividend outlook is very positive. This is due to its long track record of same store sales growth and focus on cost cutting. The latter will see Coles aim to deliver $1 billion in cumulative savings by FY 2023. I estimate that its shares currently offer a forward fully franked 4.25% dividend yield.
Dicker Data Ltd (ASX: DDR)
Another dividend share to consider buying is Dicker Data. It has also been performing strongly in 2020 despite the crisis. Last month the wholesale distributor of computer hardware and software revealed that its first quarter profits grew 36.3% on the prior corresponding period to $18.4 million. It also advised that it intends to increase its dividend by 31% to 35.5 cents per share in FY 2020. This represents a 4.9% fully franked dividend yield.
Rural Funds Group (ASX: RFF)
Another option for income investors to consider is Rural Funds. It is an agriculture-focused property group with a diverse portfolio of assets across a number of industries. Given its long-term tenancy agreements and periodic rent increases, it has good visibility on its future earnings. Last month Rural Funds reaffirmed its guidance for both FY 2020 and FY 2021. It expects to pay a distribution of 10.85 cents per share in FY 2020 and then 11.28 cents per share in FY 2021. This equates to yields of 5.7% and 5.9%, respectively.
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
- With Aussie wages set to fall, could ASX 200 shares follow?
- 3 blue chip ASX dividend shares to buy right now
- Why high yield dividend shares can be detrimental to your wealth
- 3 ASX dividend kings to buy and hold forever
- UBS picks the real ASX winners from the COVID-19 grocery boom
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. The Motley Fool Australia owns shares of COLESGROUP DEF SET. 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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