I think Warren Buffett is one of the world’s best investors. Berkshire Hathaway doesn’t pay a dividend, but he likes to invest in shares that do pay a dividend. I think there are some ASX dividend shares that could be worth buying.

Here are some great income ideas that could be worth buying during these coronavirus times:

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) 

Soul Patts is often described as the Australian version of Berkshire Hathaway. It invests in both listed and unlisted businesses & assets.

Some of the ASX shares that it’s invested in include TPG Telecom Ltd (ASX: TPM), Brickworks Limited (ASX: BKW) and Clover Corporation Limited (ASX: CLV). Some of its unlisted investments include swim schools and agriculture.

Warren Buffett’s preferred holding period for shares is forever. I think Soul Patts is well placed to keep growing for decades to come and it has already been around for over 100 years.

As a bonus it has a grossed-up dividend yield of 4.7%. This dividend has increased every year since 2000. The dividend is purely funded by the investment income it receives, less expenses.

APA Group (ASX: APA) 

APA Group is an ASX energy infrastructure giant. I think Warren Buffett would really like this share because Berkshire Hathaway Energy is one of the US business’ biggest divisions.

It owns a vast network of 15,000km of natural gas pipelines around Australia with a presence in every mainland state and the Northern Territory. It also owns or has interests in gas storage facilities, gas-fired power stations and renewable energy generation (wind and solar farms). APA owns, or manages and operates, a portfolio of assets worth more than $21 billion and delivers half the nation’s natural gas usage.

APA is actually looking for opportunities in the US which would be a good way to strengthen and diversify earnings further.

The energy giant currently offers a distribution yield of 4.4%.

Duxton Water Ltd (ASX: D2O) 

I think Warren Buffett’s share choices and his previous comments show he likes investing in businesses that are ‘essential’ for western life like Apple, energy and insurance.

Water is an integral part of the agriculture process for farmers. Duxton Water provides access to water entitlements which can either be leased for multiple years or it can provide short-term access.

The amount of water that is now leased means Duxton Water’s board has been confident enough to project growing dividends for the next two years.

I calculate that based on the next 12 months of dividends the forward grossed-up dividend yield is 6.25%.

Which Warren Buffett ASX dividend share is best?

I think APA looks fairly priced now, so I wouldn’t call it a buy. Soul Patts is the one with the best dividend record and I believe it’s the one that’s most like Berkshire Hathaway. So Soul Patts would be the one I’d go for as a Warren Buffett ASX dividend share.

More reading

• 3 ASX shares to instantly diversify your portfolio
• 3 ASX 200 dividend shares I’d buy today
• These mid cap ASX shares could grow into large caps in the future
• 2 ASX dividend shares to rescue your income hopes
• Why I think it’s time to buy this ASX 200 share

Tristan Harrison owns shares of DUXTON FPO and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Clover Limited. The Motley Fool Australia owns shares of and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of APA Group. The Motley Fool Australia has recommended DUXTON FPO. 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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If you’re in retirement then you’ll no doubt be well aware of how difficult it has become to generate an income from term deposits and savings accounts.

Unfortunately, I suspect it could be many years before we see interest rates at levels that are sufficient to generate a liveable income from.

But don’t worry because there are a large number of shares on the ASX which I believe could be part of a successful retirement portfolio.

Two top dividend shares I think retirees ought to consider are listed below. Here’s why I like them:

Coles Group Ltd (ASX: COL)

I would argue that Coles is the best share for a retiree to own right now. This is due to its solid long term growth potential, generous dividend policy, and defensive qualities. The supermarket giant has displayed the latter this year with its strong sales growth during the pandemic. I’m not the only one that thinks Coles is a buy. A recent broker note out of Goldman Sachs reveals that it has Coles on its conviction buy list with an $18.60 price target. This implies potential upside of approximately 21% for its shares over the next 12 months. But just as good, the broker is forecasting a 65 cents per share fully franked dividend in FY 2021. This represents a 4.25% forward dividend yield.

Telstra Corporation Ltd (ASX: TLS)

Another top option for retirees to consider buying is Telstra. Like Coles, I think the telco giant has a lot of the qualities required for a spot in a retirement portfolio. It has defensive earnings, a generous dividend yield, and decent growth prospects. While the latter may be a couple of years away, I think Telstra could return to growth potentially as soon as 2022 when the NBN headwinds ease and its cost cutting takes full effect. In the meantime, I’m optimistic that its free cash flow will be sufficient to maintain its current dividend of 16 cents per share. Though, if a much-speculated cut to 14 cents per share is made in response to the pandemic, its shares will still provide an above-average yield. 16 cents per share equates to a fully franked 5.1% yield, whereas 14 cents per share would be a 4.5% yield.

More reading

• Is the Bega Cheese share price a strong ASX buy today?
• Forget term deposits and buy these top ASX dividend shares
• 2 ASX shares I would buy for growth and income
• Latest ABS data reveals how Australians are responding to COVID-19
• Why Macquarie, Telstra, United Malt, & Westpac are dropping lower

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. 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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The Altium Limited (ASX: ALU) share price is trading higher today – up 0.26% at the time of writing to $34.96 a share.

Although Altium is trailing the performance of the broader S&P/ASX 200 Index (ASX: XJO) today (which is up over 2%), it’s still been a fantastic few weeks to hold Altium shares. Remember, this is a company that was asking almost $23 just eight weeks ago – meaning an investor that bought in then would be sitting on a healthy gain of almost 50% today.

But is there still room for Altium shares to run?

Here’s why you might (or might not) want to throw $3,000 into Altium shares today.

Are Altium shares a good deal today?

Altium is one of the ASX’s most exciting tech stocks. It’s even part of the most-exclusive WAAAX club of tech market darlings that have captured investors’ attention over the past couple of years.

The company makes and markets software (creatively called Altium Design) that aims to assist electrical engineers with designing and producing printed circuit boards. It sells this software through the highly lucrative Software-as-a-Service (SaaS) model as well, which sets the company up very well for strong recurring revenue streams.

Printed circuit boards (PCBs) are an essential component of every mildly complex modern electronic device you can think of. Everything from smartphones and TVs to refrigerators and cars are full of PCBs and each one requires a different and unique design. The future possibilities are truly endless, in my view.

Altium has found a brilliant way to exploit this niche with its Design software, which has proved remarkably popular in its field. Altium has long had a goal of hitting 100,000 subscribers by 2025 (for its software, not its YouTube channel), which it looks well on the way to achieving.

But one of the best things about Altium shares in 2020? Its management doesn’t see too much of an impact on its core business from the outbreak of the coronavirus, and subsequent economic shutdowns. In a recent ASX release, the company’s CEO stated:

“At an industry level, electronic design is holding up relatively well in the new environment as engineers use excess time and capacity from the slowdown in manufacturing and supply chain to revert back to prototype designs.”

Although Altium did withdraw its 2020 guidance at the same time, I think the move was more precautionary that foreboding, judging by the above statement.

Foolish takeaway

Altium is a high-growth company that I believe has a bright future ahead of it. It’s a company sitting in a powerful tailwind that should last well into the decade and beyond.

On current prices, I think Altium is a little expensive (with a price-to-earnings ratio of 56.5). But, if you’re a true believer in Altium and have a long time horizon, it still has the potential to be a good investment today, in my view.

More reading

• The ASX big bank stock most likely to outperform in the COVID-19 recovery
• Cochlear share price edges lower on patent infringement news
• 3 ASX shares to instantly diversify your portfolio
• Are ASX 200 travel shares in the buy zone?
• Is the Bega Cheese share price a strong ASX buy today?

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Altium. 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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