Author: therawinformant

If you’re looking to add a few new dividend shares to your portfolio, then the two listed below could be top options this month.

Both these ASX shares offer generous yields and look well-placed to continue paying dividends in 2020 despite the crisis. Here’s why I think they are in the buy zone right now:

Aventus Group (ASX: AVN)

Aventus is a retail property company which owns a total of 20 large format retail parks across Australia. While retail property is going through a difficult time right now because of the pandemic, Aventus looks better positioned that most. This is because its rental income has a high weighting towards everyday needs, which have been largely unaffected by the crisis.

Goldman Sachs is very positive on the company and has forecast a ~17.3 cents per unit distribution in FY 2021. Based on the current Aventus share price, this equates to a very generous forward ~8.1% distribution yield. Overall, I think this could make Aventus a dividend share to buy right now.

Telstra Corporation Ltd (ASX: TLS)

Another dividend share to consider buying is Telstra. After years of declining earnings and dividend cuts, I’m confident the tide is now turning for this telco giant. This is due to a combination of the NBN headwind easing, rational competition returning, and the material cost cutting from its T22 strategy.

All in all, I believe this has put Telstra in a position to generate sufficient free cash flow in the coming years to maintain its 16 cents per share fully franked dividend. After which, I’m optimistic that it won’t be long until the company returns to growth at long last. For now, based on the latest Telstra share price, it offers investors an attractive fully franked 4.6% dividend yield.

More reading

• 3 safe and strong ASX dividend shares to buy during the pandemic
• Why I would buy Telstra and these ASX dividend shares
• These ASX dividend shares will help you beat low interest rates
• a2 Milk and 1 other quality ASX share to buy right now
• ASX 200 Weekly Wrap: Rocketing BNPL shares fail to stop ASX 200 slide

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 has recommended AVENTUS RE UNIT. 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 Buy Telstra and this ASX dividend share for income appeared first on Motley Fool Australia.

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After a strong start to the week, the S&P/ASX 200 Index (ASX: XJO) gave back some of its gains and dropped notably lower on Tuesday. The benchmark index fell 0.6% to 5,941.1 points.

Will the market be able to bounce back on Tuesday? Here are five things to watch:

ASX 200 to rebound.

It looks set to be a positive day of trade for the ASX 200 index on Wednesday after a very strong night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 30 points or 0.5% higher. In the United States the Dow Jones rose 2.1%, the S&P 500 climbed 1.3%, and the Nasdaq pushed 0.9% higher. Easing coronavirus cases in Florida and California appears to have given investor sentiment a boost.

Oil prices rise.

Energy producers Beach Energy Ltd (ASX: BPT) and Oil Search Limited (ASX: OSH) could be positive performers on Wednesday after oil prices pushed higher. According to Bloomberg, the WTI crude oil price has risen 1% to US$40.49 a barrel and the Brent crude oil price climbed 0.7% to US$43.05 a barrel. Oil prices rose after OPEC and its allies revealed that they cut production by more than agreed in June.

Gold price largely flat.

Gold miners such as Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could have a subdued day of trade after a flat night of trade for the gold price. According to CNBC, the spot gold price is ever so slightly higher at US$1,812.50 an ounce. Coronavirus concerns has helped drive the precious metal beyond US$1,800 an ounce this month.

Woodside asset review.

The Woodside Petroleum Limited (ASX: WPL) share price could come under pressure on Wednesday after the energy producer announced billions of dollars of impairments. According to the release, Woodside expects to recognise non-cash, post-tax impairment losses of US$3.92 billion with its first half results. This comprises $2.76 billion for oil and gas properties and $1.16 billion for exploration and evaluation assets.

Collins Foods goes ex-dividend.

The Collins Foods Ltd (ASX: CKF) share price is likely to drop lower this morning when it trades ex-dividend for its final dividend. Eligible shareholders of the KFC and Taco Bell restaurant operator can now look forward to being paid its fully franked 10.5 cents per share dividend later this month on 30 July 2020.

More reading

• ASX 200 drops 0.6% today, Afterpay share price down 7%
• Is the Coles share price still attractive after it surged to a record high today?
• Investor in your 30s? Buy these cheap ASX shares
• Top brokers pick the latest ASX small cap stocks to buy today
• Macquarie picks ASX stocks that can deliver positive earnings surprises next month

Motley Fool contributor James Mickleboro owns shares of Collins Foods Limited. The Motley Fool Australia has recommended Collins Foods 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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