Luckily for income investors in this low interest rate environment, there are plenty of dividend shares that offer superior yields to those that you’ll find with term deposits and savings accounts.

Three fantastic ASX dividend shares that I would buy today are listed below. Here’s why I like them:

BWP Trust (ASX: BWP)

BWP is a real estate investment trust which has close ties with Wesfarmers Ltd (ASX: WES). Not only are the majority of its warehouses leased to Wesfarmers’ Bunnings business, the conglomerate is also a major shareholder in the trust. I think this is a big positive as the Bunnings owner is unlikely to do anything that would have a negative impact on BWP’s performance and ultimately its investment. Overall, I believe this leaves it well-placed for modest and consistent income and distribution growth over the next decade. At present I estimate that it offers investors a forward 5.1% yield.

Rio Tinto Limited (ASX: RIO)

Another dividend share to look at buying is this mining giant. I think Rio Tinto could be a great option due to its world class operations and the high levels of free cash flow it is generating. Especially given how high iron ore prices have been trading this year. And with many tipping prices to remain strong in 2021, Rio Tinto looks well-positioned to reward shareholders handsomely with dividends over the next couple of years. I estimate that its shares offer a forward dividend yield of at least 5%. But this could be much higher if special dividends are paid next year.

Transurban Group (ASX: TCL)

A final dividend share to consider buying is Transurban. It is a toll road operator with a number of key roads in Australia and North America. While its performance is likely to disappoint in the near term because of the pandemic, I expect traffic volumes to normalise as restrictions ease. So with its shares still down 12% from their high (and likely to go lower today), I believe it could be a great time to consider a long term and patient investment. I estimate that its shares offer a 3.3% FY 2021 distribution yield.

More reading

• 2 top ASX dividend shares you can buy right now
• Is the Wesfarmers share price good value?
• 2 top ASX dividend shares for income in 2020
• Why I think Wesfarmers is the best ASX blue chip
• Leading brokers name 3 ASX 200 shares to sell today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Transurban Group and Wesfarmers 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.

The post 3 quality ASX dividend shares to solve your income needs appeared first on Motley Fool Australia.

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This morning S&P Dow Jones Indices announced the June 2020 quarterly rebalance of the S&P/ASX Indices.

This is when a number of shares are added or removed from particular indices. Which can be a bigger deal than you might think, as billions of dollars are invested into funds which track indices like the S&P/ASX 200 Index (ASX: XJO).

In addition to this, fund managers often have mandates that allow them to only buy shares on a certain index. This can lead to them dumping shares which are removed from indices and buying shares which are added.

What changes have been made?

Given that S&P Dow Jones Indices skipped the March quarterly rebalance because of the market volatility, there have been a larger than normal amount of changes today.

Here’s a summary of some key changes that will be effective at the open on 22 June 2020.

S&P/ASX 20 Index

Gaming technology company Aristocrat Leisure Limited (ASX: ALL) has been added to the ASX 20 index at the expense of packaging company Amcor PLC (ASX: AMC).

S&P/ASX 50 Index

Infant formula and fresh milk company A2 Milk Company Ltd (ASX: A2M) will join the ASX 50 index later this month. It will take the place of embattled financial services company AMP Limited (ASX: AMP). Payments company Afterpay Ltd (ASX: APT) had been tipped for inclusion in the index but appears to have fallen just short.

S&P/ASX 100 Index

The shares of data centre operator NEXTDC Ltd (ASX: NXT) and gold miner Saracen Mineral Holdings Limited (ASX: SAR) have been strong performers in 2020. This has led to them being included in the ASX 100 index at the expense of shopping centre operator Unibail-Rodamco-Westfield (ASX: URW) and coal miner Whitehaven Coal Ltd (ASX: WHC).

S&P/ASX 200 Index

The benchmark index will welcome five new shares later this month. Centuria Industrial REIT (ASX: CIP), Megaport Ltd (ASX: MP1), Mesoblast limited (ASX: MSB), Omni Bridgeway Ltd (ASX: OBL), and Perseus Mining Limited (ASX: PRU) will join the illustrious index.

Making way for them will be Estia Health Ltd (ASX: EHE), Hub24 Ltd (ASX: HUB), Jumbo Interactive Ltd (ASX: JIN), Mayne Pharma Group Ltd (ASX: MYX), Pilbara Minerals Ltd (ASX: PLS), and Pinnacle Investment Management Group Ltd (ASX: PNI).

You might have noticed that there are five in and six out. This is because there has actually been 201 shares on the ASX 200 over the last few months. This was the result of Graincorp Ltd (ASX: GNC) spinning off its United Malt Group Ltd (ASX: UMG) business earlier this year.

Two surprising omissions from the new additions were Kogan.com Ltd (ASX: KGN) and Zip Co Ltd (ASX: Z1P). Both looked like strong candidates for inclusion after their remarkable share price gains this year. It looks like they will have to wait until September now.

More reading

• 3 gold mining shares that may be a buy today
• 5 things to watch on the ASX 200 on Friday
• Why is the A2 Milk share price underperforming?
• All Technology Index sees stunning comeback
• Why Afterpay, Amcor, Computershare, & Westpac shares are dropping lower

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Jumbo Interactive Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO, Hub24 Ltd, MEGAPORT FPO, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia owns shares of A2 Milk. The Motley Fool Australia has recommended Hub24 Ltd, Jumbo Interactive Limited, and MEGAPORT 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.

The post S&P quarterly rebalance: A2 Milk added to ASX 50 & NEXTDC in the ASX 100 appeared first on Motley Fool Australia.

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