If you are looking to invest in dividend shares, then you’re in luck. I believe there are a large number of quality options for investors to choose from right now.

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

BHP Group Ltd (ASX: BHP)

I believe that BHP would be a great dividend share for income investors that are looking for exposure to the resources sector. I think the Big Australian is well-positioned to deliver strong free cash flows this year thanks to high iron ore prices. This has been driven by supply disruptions in Brazil and robust demand from Chinese steel makers. I estimate that the mining giant’s shares currently provide investors with a forward fully franked 5% dividend yield.

BWP Trust (ASX: BWP)

Another ASX dividend share to consider buying is this real estate investment trust. BWP has a focus on warehouses, with most of them leased to hardware giant Bunnings. I believe Bunnings is a high quality tenant and unlikely to be leaving its properties any time soon. Especially given how the retailer is owned by Wesfarmers Ltd (ASX: WES), which is also a major BWP shareholder with a ~23.6% stake. At present I estimate that it offers investors a forward 5.1% yield.

Rural Funds Group (ASX: RFF)

Another ASX dividend share to consider is Rural Funds. It is a property company which owns a portfolio of agricultural assets across Australia. It generates its revenue from long-term leases across five sectors: almond and macadamia orchards, cattle assets, vineyards, and cotton assets. Pleasingly, the company has not been impacted by the pandemic and remains on course to increase its distribution to 11.28 cents per share next year. This equates to a very generous forward 5.5% distribution yield.

More reading

• Are our ASX big miners on an earnings upgrade cycle?
• JobMaker is coming. These 3 ASX 200 shares could benefit
• Is the BHP share price cheap right now?
• 5 things to watch on the ASX 200 on Wednesday
• Smash low interest rates with these ASX dividend shares

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED. The Motley Fool Australia owns shares of 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 high yield ASX dividend shares to buy right now appeared first on Motley Fool Australia.

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The new $688 million grant to stimulate the construction sector is a fillip to a handful of ASX stocks and will add to the euphoria on the market.

The S&P/ASX 200 Index (Index:^AXJO) is set to break above 6,000 points this morning thanks to a strong lead from Wall Street and the federal government’s housing boost that was unveiled last night.

But how much of a boost the new grant can provide remains to be seen as there are a number of disappointing features in the new scheme.

Low end of scale

For one, the $25,000 cash handout is at the low end of estimates. There was speculation that the grant would range between $20,000 and $40,000, with some commentators even tipping it could go higher.

The not as bad as expected GDP figure for the March quarter and early signs of an economic recovery from the COVID-19 shutdown may have persuaded the Morrison government from being so generous.

There are also questions about whether the policy is well targeted or will make as much of a difference to the economy as it could.

Who qualifies for the housing grants?

The grant, which is aimed at protecting construction jobs, can be used by eligible households to renovate or build new homes.

To qualify, singles cannot earn more than $125,000 and couples not more than $200,000 in FY19, according to The Guardian.

The new home that is being built must be used as the principal place of residence and the property value (including land) cannot exceed $750,000.

For renovations, the project must be between $150,000 and $750,000 with the existing property worth not more than $1.5 million.

ASX stocks in the spotlight

Before the details were released, I thought the grant would provide a big support to sagging house prices. Now I am not so sure even though new home developers like Stockland Corporation Ltd (ASX: SGP) and Mirvac Group (ASX: MGR) are likely to benefit.

Hardware retailers like those owned by Wesfarmers Ltd (ASX: WES) and Metcash Limited (ASX: MTS) will also see a sales boost as these are where tradies go to get supplies.

By extension, home fitting suppliers are another group that will benefit from the new stimulus. These include GWA Group Ltd (ASX: GWA) and Reece Ltd (ASX: REH).

Further, construction materials companies like CSR Limited (ASX: CSR) and James Hardie Industries plc (ASX: JHX) should also be excited if the stimulus leads to the construction of 30,000 new homes by Christmas, as intended.

It’s a wasted opportunity that the scheme didn’t target social housing. I think that is a better way to support the construction industry and wider community without distorting the housing market.

More reading

• Is the CBA share price cheap today?
• Should the Xero share price have a P/E ratio of 4,000?
• 5 things to watch on the ASX 200 on Thursday
• These ASX 200 shares could be perfect for a retirement portfolio
• The latest ASX 200 stocks to be upgraded to “buy” amid the recession

Motley Fool contributor Brendon Lau owns shares of James Hardie Industries plc and Reece Australia Limited. Connect with me on Twitter @brenlau.

The Motley Fool Australia owns shares of 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.

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The Australian share market was on form again on Wednesday and raced notably higher.

Some shares climbed more than most, with a few managing to even hit 52-week highs or better.

Three that have achieved this feat are listed below. Here’s why they are scaling new heights:

ASX Ltd (ASX: ASX)

The ASX Ltd share price continued its positive run and hit a record high of $89.71 on Wednesday. Investors have been buying the stock exchange operator’s shares this year due to its defensive qualities and strong share market activity. This morning the company reported a 49% increase in capital raised on the ASX during the month of May compared to the prior corresponding period. It also revealed that the total number of trades on the ASX is up 29% year to date to 423.3 million.

Integrated Research Limited (ASX: IRI)

The Integrated Research share price climbed to a two-year high of $3.66 yesterday. Investors appear confident that demand for the services of this global provider of performance management software for critical IT infrastructure, payments, and unified communications will remain strong during the pandemic. The market has not heard from the company since its half year results in February. This could be a case of no news is good news.

Zip Co Ltd (ASX: Z1P)

The Zip Co share price continued its remarkable run and hit a record high of $6.79 on Wednesday. Investors have been fighting to get hold of the payments company’s shares since it announced an agreement to acquire New York-based buy now pay later provider QuadPay. This deal will see the company go head to head with Afterpay Ltd (ASX: APT) in the United States market. QuadPay is a leading, high growth, instalment provider with 1.5 million customers and 3,500 merchants on its platform. From these it is currently generating annualised total transaction value of over $900 million and annualised revenue of $70 million. This is just the smallest fraction of a U.S. retail market estimated to be worth a staggering $5 trillion.

More reading

• ASX 200 jumps 1.8%, Australian headed for recession
• Sezzle Inc shares and 2 other small cap ASX techs surge higher today
• Why Afterpay, Infigen, Qantas, & Zip Co shares are charging higher
• The Zip Co share price just zoomed to a record high: Is it too late to invest?
• ASX 200 rises 0.3%, Zip rockets higher

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 Integrated Research Limited and ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T 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 Why Zip Co and these ASX shares just zoomed to new highs appeared first on Motley Fool Australia.

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