You might be eyeing the current market as an opportunity to buy some cheap ASX dividend shares.

The S&P/ASX 200 Index (ASX: XJO) is down 10.5% since the start of the year, which could mean there are some bargain buys.

However, I think it’s easier said than done to find undervalued shares. There are a lot of smart investors out there hunting for bargains.

Here are a few of the ASX dividend shares that I would consider investing in today.

Why Telstra is on my ASX dividend share watchlist

I think Telstra Corporation Ltd (ASX: TLS) shares are worth a look right now.

Telstra has been an ASX dividend share staple for a number of years now, although it’s true that there have been some steep share price declines and dividend cuts to Telstra shares in recent years.

That means the Aussie telco may not be the reliable income share it has been in the past, but I still think there could be some long-term value. Telstra is currently yielding 3.1%, which would be a handy portfolio boost in the current times.

Of course, dividend yields could be misleading right now, but I think Telstra’s future dividend payment prospects remain bright, particularly given its emerging position as a potential leader in the 5G network space. That could be the key to the Aussie telco gaining back market share (and earnings) it has lost to the NBN.

Are ASX bank shares worth a look?

Out of the ASX banks, I think Macquarie Group Ltd (ASX: MQG) could be a solid ASX dividend share to buy.

The Macquarie share price is down 11.8% this year and in my opinion could be an undervalued prospect, given its 3.5% dividend yield. Recent ASX bank dividend cuts don’t bode well for strong income in 2020, but there’s a chance Macquarie could maintain its distributions.

If Macquarie’s investment teams can capitalise on the current market volatility, that could pave the way for a strong half-year earnings result. Higher earnings often means more free cash flow, which is good news for investors holding out hope for half-year dividend payment.

Can this ASX dividend share outperform in 2020?

JB Hi-Fi Limited (ASX: JBH) is one ASX dividend share, in particular, that I think could outperform in the next 12 months.

The JB Hi-Fi share price is up 10% in 2020 but it could be set to climb higher if it continues its strong sales trajectory.

More Aussies working from home has been a big factor behind the recent share price move.

JB Hi-Fi’s electronics sales have skyrocketed in recent months but I think there’s more potential growth on the way. If we see a sustained shift towards a more remote working model, that could see more Aussies upgrade their home setups.

It’s certainly not a long-term trend, but any short-term sales boost is welcome in the current market. More sales means higher earnings and that could mean JB Hi-Fi maintains its distributions, while other top companies are forced to make cuts.

That would be good news for JB Hi-Fi and its investors, who could pick up a 3.6% dividend yield today.

Foolish takeaway

These are just a few of the ASX dividend shares that I think could be good value buys for income alongside some potential capital gains.

More reading

• Alphabet soup: Is the ASX 200 in for a V-shaped COVID recovery or rolling Ws?
• Where to invest $10,000 in ASX 200 shares for 2030
• Why I think the Telstra share price could hit $4 in 2020
• Is the Macquarie share price a buy?
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited and Telstra 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 S&P/ASX 200 Index (ASX: XJO) is on form again on Wednesday and on course to record a decent gain. At the time of writing the benchmark index is up almost 0.4% to 5,976.7 points.

Four shares that are climbing more than most today are listed below. Here’s why they are storming higher:

The Afterpay Ltd (ASX: APT) share price is up 3% to $60.93. Investors have been buying the payments company’s shares after it released an update on its UK business. According to the update, the Clearpay business has reached 1 million active customers after one year of operation in the country. Pleasingly, management notes that UK customers are using its service more frequently than its US customers were after one year in that market.

The APA Group (ASX: APA) share price has risen over 2.5% to $11.59. Investors have been buying the energy company’s shares after it revealed its distribution plans. APA announced an estimated final distribution of 27 cents per security for the second half. This brings its full year distribution to 50 cents per security, up 6.4% on FY 2019’s payout.

The Evolution Mining Ltd (ASX: EVN) share price has jumped 4% to $5.48. Investors have been buying the gold miner’s shares today after the gold price hit its highest level since late in 2012. Evolution is just one of a number of gold miners charging higher. So much so, the S&P/ASX All Ordinaries Gold index is up 2.5% at the time of writing.

The Sonic Healthcare Limited (ASX: SHL) share price has climbed almost 4% to $30.03. Investors have been buying the healthcare company’s shares after it released a trading update. That update revealed that its performance rebounded strongly in May and June following weakness in March and April. As a result, management revealed that it is in a position to provide guidance again. It now expects its EBITDA to be broadly flat in FY 2020.

More reading

• Sonic Healthcare share price pushes higher on FY 2020 guidance update
• Coronavirus second wave potential could drive investment portfolio changes
• Best growth shares to buy with $4,000
• 5 things to watch on the ASX 200 on Wednesday
• Afterpay share price on watch after reaching 1 million UK customers

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO and APA Group. The Motley Fool Australia has recommended Sonic Healthcare 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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In late morning trade the S&P/ASX 200 Index (ASX: XJO) is on course to continue its positive run. At the time of writing the benchmark index is up 0.3% to 5,973.6 points.

Four shares that have failed to follow the market higher today are listed below. Here’s why they are dropping lower:

The AMP Limited (ASX: AMP) share price is down over 2% to $1.86. The financial services company’s shares were solid performers on Tuesday after announcing the receipt of the final regulatory approval required for the sale of its life business to Resolution Life. This morning analysts at Morgan Stanley responded to the news by holding firm with their equal weight rating and $1.40 price target.

The Qantas Airways Limited (ASX: QAN) share price has fallen 2% to $4.22. Investors may have been selling the airline operator’s shares amid concerns over another spike in coronavirus cases in Victoria. If it isn’t brought under control soon, there are worries it could delay the recovery in the domestic travel market.

The Qube Holdings Ltd (ASX: QUB) share price is down by 2.5% to $2.84. This morning analysts at Morgans downgraded Qube’s shares to a reduce rating with a $2.45 price target. It appears to believe the company’s shares are overvalued after a strong gain over the last few months. Qube’s shares are up a massive 59% since this time in March.

The Transurban Group (ASX: TCL) share price is down over 1% to $14.62. This decline may have been driven by a broker note out of UBS this morning. According to the note, the broker has downgraded the toll road operator’s shares to a neutral rating with a $14.85 price target. UBS made the move on valuation grounds after a strong rebound in its share price over the last couple of months.

More reading

• My 3 high-yield ASX dividend shares to buy now
• Coronavirus second wave potential could drive investment portfolio changes
• Forget term deposits! These ASX dividend shares are better
• ASX 200 finishes higher, Woolworths gives update
• Why the AMP share price is up 9% today

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