If you’re concerned that some popular dividend shares will see their yields fall to zero, then you might want to take a look at the ones listed below.

I believe all three have robust business models that will ensure that they are able to continue paying dividends for a long time to come. Here’s why I like them:

Coles Group Ltd (ASX: COL)

I think Coles is one of the most defensive shares on the Australian share market and well-placed to grow its sales, earnings, and dividend whatever the economy throws at it. And while the same could be said for rival Woolworths Group Ltd (ASX: WOW), I believe Coles is the better value option. At present, I estimate that its shares are trading at ~21x FY 2021 earnings, whereas Woolworths’ shares are trading at almost 26x estimated FY 2021 earnings. Its shares also offer a more generous dividend yield, which I estimate will yield a fully franked 3.9% next year.

Telstra Corporation Ltd (ASX: TLS)

Another top dividend share to consider buying is Telstra. As with Coles, I believe it is a highly defensive share and well-positioned to at least maintain its 16 cents per share dividend over the next couple of years. Especially given its free cash flow forecast, cost cutting plans, and easing NBN headwind. If it does maintain its dividend, its shares will provide investors with a fully franked 5% dividend yield.

Wesfarmers Ltd (ASX: WES)

A final dividend share to consider buying is Wesfarmers. Once again, I think it has attractive and defensive qualities. Especially in the current environment, where the government is supporting home improvements. I expect this to give its Bunnings business a big lift. Which is particularly important, given how the hardware giant is now its biggest contributor to earnings following the spin-off of Coles. At present, I estimate that Wesfarmers’ shares offer investors a forward fully franked ~3.6% dividend yield.

More reading

• This top fund manager believes dividend yields are going to 0%. Where should you invest?
• Is the Woolworths share price a secret buy?
• Ready to invest $5,000? I’d buy these ASX dividend shares today
• Why I think the Telstra share price could hit $4 in 2020
• Coronavirus second wave potential could drive investment portfolio changes

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 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.

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The Red 5 Limited (ASX: RED) share price is cratering today. Red 5 shares are down a staggering 35.22% at the time of writing to 22 cents a share after closing yesterday at 34 cents a share.

Red 5 is an ASX gold miner that operates the Darlot and King of the Hills gold mines in the Eastern Goldfields region of Western Australia. Today’s share price move will be very disappointing for the company, considering it was just included in the All Ordinaries Index (ASX: XAO) 2 days ago. The drop puts Red 5 towards the bottom of the company’s 52-week range of 16–40 cents per share.

Why the Red 5 share price is tanking today

The catalyst for this dramatic share price move appears to be an ASX release that the company put out before market open this morning. In this release, Red 5 management listed a number of concerns investors are clearly reacting to today.

Firstly, the company is planning to “scale down” underground ore production at its King of the Hills mine over the second half of 2020 in order to commence open pit ming at its recently acquired Great Western project.

Secondly, Red 5 is reporting that it is expecting substantially reduced gold production from its Darlot mine in the quarter ending 30 June 2020 due to malfunctioning equipment and higher dilution of gold ore than was originally expected. According to the release:

A recent crusher breakdown has resulted in lost production of ~3,200oz which, together with lower than forecast average mining grades as a result of dilution, has resulted in production for the June 2020 Quarter of ~21,000 oz (compared with guidance of 26,000 – 30,000 oz). FY20 production is expected to be ~93,000 oz (compared with guidance of 98,000 – 102,000 oz).

The company reports that as of June 2020, the mine is back to full production capacity.

Red 5 managing director mark Williams had this to say about the release today:

While we are disappointed that Darlot production has again been impacted in the short term due to the issues outlined in this release, we are confident that the measures implemented will stabilise production and improve predictability to put us on track to achieve our FY21 forecast.

This FY21 forecast is an expected 90,000–98,000 ounces of gold at an all-in sustaining cost of $1,830–$2,030 an ounce. At the time of writing, the gold price is $2,552.50 in Australian dollars, or US$1,772.

More reading

• ASX 200 Weekly Wrap: ASX back in the green
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• 2 crazy cheap ASX 200 shares you could still buy
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Motley Fool contributor Sebastian Bowen 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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The S&P/ASX 200 Index (ASX: XJO) is having a bit of a Goldilocks day and can’t seem to decide whether it thinks ASX shares are too hot, too cold or just right. After open, we saw a surge, followed by a dip and now (at the time of writing) we are sitting pretty flat at 5,978 points.

Regardless of what the ASX 200 does today or tomorrow, there are signs some investors are worried about the current level of the ASX share market, particularly given the ongoing issues surrounding coronavirus and its economic impact around the world.

So if the ASX 200 does crash again, for whatever reason, how would you respond?

Well, personally, I’ll be buying more shares. Here are 3 ASX shares I have my eye on for if the markets tank again in 2020:

An ASX healthcare leader

CSL Limited (ASX: CSL) is one of the top shares on my watchlist for if the ASX 200 tumbles again. I was watching CSL shares like a hawk through the March crash, but the price didn’t really get down to a level I thought was a bargain. Alas, the market rebounded and here we are today. Whilst I don’t think CSL will be able to continue growing at its previous breakneck speeds, I still think this company will make a top, long-term investment. It’s a global leader in the blood medicines and vaccinations space and has an unrivalled Research and Development department.

An ASX dividend beast

WAM Research Limited (ASX: WAX) is a dividend-focused listed investment company (LIC) that I already own shares in. This LIC is still offering a robust starting yield of 7.2% today (with full franking) but during the March crash, the WAM Research share price dropped to 93 cents. At that level, the shares would have offered a starting yield of more than 10%. At those prices, I think WAM Research was a no-brainer for a top income investment. I certainly won’t be wasting a second opportunity to buy shares at those levels if it was presented again.

A payments growth share

Zip Co Ltd (ASX: Z1P) is a buy now, pay later (BNPL) provider that has also seen a strong recovery since the March crash. Back then, Zip shares dipped as low as $1.05 — a long way from their current price of $5.97 (at the time of writing). This may be a volatile share to own, but I couldn’t resist picking up some Zip shares if we retested those levels on the ASX again in 2020.

More reading

• Is the share market facing another February 2020 moment?
• Can the Newcrest share price crest to new highs?
• Here’s why I think the Link share price has a huge growth opportunity ahead
• The CBA share price is down 13% this year. Is it a cheap buy?
• Why the CSR share price is falling today

Sebastian Bowen owns shares of WAM Research Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. and ZIPCOLTD FPO. 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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