ASX dividend shares have had a rollercoaster ride in 2020. Some of the highest paying income shares have been smashed as coronavirus concerns have taken hold.

However, that doesn’t mean there aren’t good buying opportunities on the market. Here are 3 ASX dividend kings I think are worth buying and holding forever.

3 ASX dividend shares to buy and hold forever

There are still plenty of uncertain times ahead. No one knows just what the economy will look like by the end of the year, let alone 10 years into the future. As such, I think some defensive exposure in your portfolio could come in very handy.

I like the look of Coles Group Ltd (ASX: COL) shares at the moment. Coles looks to be a top ASX dividend share given its non-cyclical earnings and 2.78% dividend yield. Of course, dividend yields aren’t necessarily stable or reliable at the moment. Still, that doesn’t change the fact that Coles’ earnings are likely to be more stable than most of its ASX 200 peers.

Another ASX dividend share I believe to be in the buy zone is BHP Group Ltd (ASX: BHP). At the time of writing, BHP shares are paying an attractive 6.75%, now that the share price has fallen 18.94% lower in 2020. The mining sector could be vulnerable to the impact of COVID-19 as international trade slows down and demand for iron ore subsides.

However, I think the technical environment isn’t too bad. China’s economy is picking up pace again and the Australian Government could look to infrastructure to kickstart our own economy. On top of that, the Aussie dollar has slumped lower in 2020 which could make exports like iron ore more attractive.

My final ASX dividend share to buy and hold forever is Commonwealth Bank of Australia (ASX: CBA). ASX bank shares are under pressure at the moment with significant impairments and soft earnings. However, CBA remains an important pillar of the Aussie economy and I think it will continue to churn out consistent profits in years to come.

Bank dividend cuts have spooked some investors, but given CBA shares are down 24.73% in 2020, I think they could be a long-term bargain buy right now.

More reading

• UBS picks the real ASX winners from the COVID-19 grocery boom
• ASX 200 sinks 1.3%: Big four banks drag ASX lower & Altium issues sales warning
• 3 safe and strong ASX dividend shares to buy today
• 3 cheap ASX 200 shares for value investors
• These 3 ASX 200 retail shares are absolutely thriving right now

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET. 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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Images of panicked shoppers rushing into the supermarket chains have helped the sector outperform the S&P/ASX 200 Index (Index:^AXJO) during the COVID-19 pandemic.

The question investors are facing is what happens as the paranoia dies down and fears of the sky falling eases.

In other words, are ASX shares in the consumer staples sector about to wake with a bad hangover?

Structural changes

The good news is that changes to consumer behaviour is likely to endure even as world gets the coronavirus disaster under control.

UBS identified three trends that will shape the fortunes of the grocery sector and highlighted the winners and losers from the changes.

Online boom

The big shift to online buying is an easy one to pick. Consumers aren’t only using the web to shop for clothes and electronics, but are embracing online grocery deliveries during the lockdown.

This is unlikely to change post COVID-19. History has shown that once consumers embrace a new channel, they are likely to stick to it as habits are hard to reverse.

Our two largest supermarkets, Coles Group Ltd (ASX: COL) and Woolworths Group Ltd (ASX: WOW), are best placed to benefit from this trend. Competitors Aldi and Metcash Limited (ASX: MTS) aren’t.

Increasing appetite for eating in

The second trend is change in eating occasions. UBS believes Aussies will be eating at home more instead of dining out.

Growing levels of joblessness and closures of restaurants that cannot survive the coronavirus lockdown will keep this trend going over the medium-term, if not longer.

The broker estimated that every 0.1 times increase in at-home cooking frequency equates to around a 1% increase in grocery sales.

Bargain products in vouge

The third trend is the move to value brands. This is again linked to the weakening economy, although UBS thinks premium health products with a clear point of differentiation are well placed to benefit too.

Based on these three lasting changes to spending habits, the broker believes Woolworths, Coles, A2 Milk Company Ltd (ASX: A2M) will be the winners in the sector.

On the flipside, Coca-Cola Amatil Ltd (ASX: CCL) will be a loser as its beverages are aimed at the higher end of the market, while grocery distributor Metcash Limited (ASX: MTS) lacks the online component.

The experts at the Motley Fool have identified other ASX stocks that are likely to outperform in the coronavirus recovery.

Click on the link below to find out what these shares in their free report.

More reading

• 3 safe and strong ASX dividend shares to buy today
• These 3 ASX 200 retail shares are absolutely thriving right now
• 3 high quality ASX shares for a retirement portfolio
• Is the Woolworths share price a buy?
• Buy these 4 ASX shares to survive the pandemic

Motley Fool contributor Brendon Lau has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of A2 Milk, COLESGROUP DEF SET, and 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 UBS picks the real ASX winners from the COVID-19 grocery boom appeared first on Motley Fool Australia.

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