Fortunately for income investors in this low interest rate environment, there are a good number of shares on the ASX paying shareholders generous dividends.

Three which I think are quality options right now are listed below. Here’s why I would buy them:

Australia and New Zealand Banking GrpLtd (ASX: ANZ)

I think ANZ could be a good option for income investors. I believe the selloff of its shares has been overdone and has left them trading at an attractive price of just 13x estimated FY 2021 earnings and 0.9x FY 2021 book value. And while dividend cuts are inevitable, I’m expecting the banking giant to still pay one which provides a very generous yield next year. I’m forecasting a partially franked dividend of $1.05 per share in FY 2021. Based on the current ANZ share price, this will provide investors with a very generous forward 5.7% yield.

BHP Group Ltd (ASX: BHP)

Another dividend share to consider buying is BHP. I believe the Big Australian is well-positioned to generate strong free cash flows in FY 2020 and FY 2021 thanks to its low cost operations and favourable commodity prices. This is particularly the case for its iron ore operations, which are benefiting from spot prices of ~US$110 a tonne. This compares to its full year cost guidance of just US$13-14 per tonne for the Western Australia Iron Ore operation. Based on the latest BHP share price, I estimate that its shares offer investors a forward fully franked ~4.9% dividend yield.

Woolworths Limited (ASX: WOW)

A final ASX dividend share to consider buying is Woolworths. I think the conglomerate would be a good option for income investors due to its quality brands, their defensive qualities, and their positive long term outlooks. Combined with its supply chain improvement plans, I believe the company is well-positioned to continue growing its earnings and dividend at a solid rate over the next decade. Based on the current Woolworths share price, I estimate that its shares provide investors with a fully franked 3% FY 2021 dividend yield.

More reading

• Why the South32 share price is falling today
• 3 ASX shares to leverage the booming iron ore price
• ASX 200 Weekly Wrap: Blue chip shares pull ASX 200 back over 6,000 points
• Cedar Woods share price edges higher on announcement
• Are our ASX bank shares expensive by global standards?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Woolworths 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 Why you should buy ANZ and these ASX dividend shares for income appeared first on Motley Fool Australia.

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On Monday the S&P/ASX 200 Index (ASX: XJO) was out of form and started the week on a disappointing note. The benchmark index fell 0.5% to 6,001.6 points.

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

ASX 200 expected to rebound.

It looks set to be a positive day of trade for the ASX 200 index on Tuesday. According to the latest SPI futures, the benchmark index is expected to open the day 45 points or 0.75% higher at the open. This follows a positive start to the week on Wall Street which saw the Dow Jones edge higher, the S&P 500 rise 0.85%, and the Nasdaq jumped 2.5% higher. The S&P 500’s gain means it is now in positive territory for 2020.

Tech shares on watch.

Tech shares including Altium Limited (ASX: ALU) and Appen Ltd (ASX: APX) could be on the rise today after an incredibly positive night of trade for their U.S. counterparts. The tech-focused Nasdaq index jumped 2.5% overnight thanks to strong gains by the likes of Amazon, Apple, Microsoft, and Google parent, Alphabet. Amazon was the star of the show with a gain of almost 8%.

Oil prices edge lower.

It could be a positive day for energy producers such as Oil Search Limited (ASX: OSH) and Santos Ltd (ASX: STO) on Tuesday after oil prices pushed higher. According to Bloomberg, the WTI crude oil price rose 0.3% to US$40.71 a barrel and the Brent crude oil price climbed 0.2% to US$43.22 a barrel. Coronavirus vaccine hopes supported oil prices.

Gold price rises.

Gold miners including Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could be on the rise again on Tuesday after the gold price strengthened further. According to CNBC, the spot gold price rose 0.45% to US$1,818.5 an ounce. Overnight the price of the precious metal hit its highest level since September 2011.

Commonwealth Bank given sell rating.

Analysts at Goldman Sachs believe the Commonwealth Bank of Australia (ASX: CBA) share price could be going lower from here. Ahead of its full year results release next month, the broker has retained its sell rating and $65.00 price target on the banking giant’s shares. This price target implies potential downside of over 10%.

More reading

• Where to invest $5,000 into ASX shares right now
• Market close: ASX 200 falls 0.5%
• ASX investors were buying these 5 international shares last week
• Why the BlueScope share price is outperforming today
• Are you a ‘risky’ investor in ASX 200 shares?

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 Altium. The Motley Fool Australia owns shares of Appen Ltd. 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 5 things to watch on the ASX 200 on Tuesday appeared first on Motley Fool Australia.

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