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2 top ASX dividend shares for income in 2020

Finding good-quality ASX dividend shares for income in 2020 has become something of a sport. This year, the normal ASX dividend paradigm has been turned on its head.
The ASX banks which were the kings of the ASX divided hill are now its paupers. Dividend aristocrat, Ramsay Health Care Limited (ASX: RHC) has suspended its dividends – ending a 20-year streak of dividend growth. Shares like Transurban Group (ASX: TCL) and Sydney Airport Holdings Pty Ltd (ASX: SYD) which used to be regarded as the safest income providers on the ASX are now struggling to tell investors how much to expect this year.
Considering all of these factors, I think we need to look outside the box for income in 2020. So here are 2 ASX dividend shares that I would consider if I were seeking top-quality income this year.
SPDR S&P Global Dividend Fund (ASX: WDIV)
This exchange-traded fund (ETF) invests in a basket of global shares that are screened for dividend reliability. In order to make the cut, WDIV’s holdings need to have either grown, or at least maintained their dividend payments over the past 10 years. As such, I think this is a great option for a diversified income investment in 2020.
Some of this ETF’s top holdings include Freenet AG, Enagas, Japan Tobacco and our own AGL Energy Limited (ASX: AGL). It’s also fairly well balanced across many different countries (19 in total). WDIV currently offers a trailing dividend yield of 6.13%.
Rio Tinto Limited (ASX: RIO)
I think the ASX resources sector is one of the best avenues to explore for ASX dividend shares in 2020. Most commodity prices have held up remarkably well across the board during the coronavirus pandemic – especially iron ore. And that’s primarily what mining giant Rio Tinto is in the business of extracting. Rio has iron ore mines all over the world, as well as several other smaller operations for diamonds, copper and gold.
With iron ore prices now comfortably sitting at multi-year highs above US$100 per tonne, Rio looks set to be able to fund generous dividend payments to its shareholders this year. On current prices, Rio shares are offering a trailing dividend yield of 5.66%, or 8.09% grossed-up. I wouldn’t be too surprised if Rio tops this trailing yield in 2020. Especially if iron ore continues to stay near its current levels.
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More reading
- 2 quality ASX dividend shares to buy today
- 3 safe and strong ASX 50 shares to buy right now
- Are the Rio Tinto, Fortescue and BHP share prices a buy right now?
- Where to invest $20,000 into ASX shares immediately
- ASX 200 Weekly Wrap: ASX bulls crash through 6,000 points
Motley Fool contributor Sebastian Bowen owns shares of Ramsay Health Care Limited and SPDR S&P Global Dividend Fund. The Motley Fool Australia owns shares of Transurban Group. The Motley Fool Australia has recommended Ramsay Health Care 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 2 top ASX dividend shares for income in 2020 appeared first on Motley Fool Australia.
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2 ASX shares I’d buy in a heartbeat

ASX shares continue to rise with investor confidence seemingly growing every week.
Australia is getting close to the point of no new COVID-19 cases across the nation. Some ASX shares are soaring in reaction to how much better the outlook seems.
But there are still many places in the world where the number of infections is still rising.
With the current state of play domestically and abroad in mind, here are two ASX shares that I’d buy in a heartbeat:
Pushpay Holdings Ltd (ASX: PPH)
Pushpay is one of the businesses that is seeing an acceleration of growth due to the unfortunate circumstances. It’s an electronic donation business that enables people to digitally give to not-for-profit organisations.
A key part of US churches is the congregations. COVID-19 and social distancing makes church gatherings more difficult at the moment. That also means that getting cash donations can become problematic for those churches.
Pushpay’s system is perfect for this environment. The ASX share’s technology also allows churches to livestream to their congregations.
The large and medium church sector is a $1 billion revenue opportunity according to Pushpay’s management.
The ASX share is aiming to approximately double its earnings before interest, tax, depreciation, amortisation and foreign currency (EBITDAF) in FY21. Pushpay’s profit margins could keep rising as it gets bigger over time.
Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)
There are few ASX shares that have stood the test of time like Soul Patts. It has been operating since the early 1900s. So it has already survived through the Spanish Flu, two world wars, the recessions and so on.
Soul Patts is invested in businesses that should be able to remain robust this year. Some large positions include TPG Telecom Ltd (ASX: TPM), Brickworks Limited (ASX: BKW) and Clover Corporation Limited (ASX: CLV).
The ASX share conglomerate continues to invest in new opportunities. It is reportedly about to start investing in regional data centres.
I think Soul Patts is one of those shares that you could invest in and potentially hold forever. Its ability to change its investments and invest in anything is very attractive.
A very nice bonus with this ASX share is that it has grown its dividend every year since 2000.
Foolish takeaway
I’d buy both of these ASX shares for the long-term in a heartbeat. Pushpay has a lot of exciting growth potential over the coming years. But Soul Patts could be a solid idea for long-term steady growth.
There are other growth shares I’d buy in a heartbeat like these future winners…
3 “Double Down” stocks to ride the bull market higher
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More reading
- Here are another 2 insanely cheap ASX 200 shares to buy right now
- 3 top ASX shares to buy now to get rich later
- 3 ASX shares to buy for the big shift to contactless payments
- How to become a millionaire before your parents with ASX shares
- Where to invest $20,000 into ASX shares immediately
Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of PUSHPAY FPO NZX. The Motley Fool Australia owns shares of and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended PUSHPAY FPO NZX. 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 2 ASX shares I’d buy in a heartbeat appeared first on Motley Fool Australia.
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