My Top 5 ASX Dividend Shares for A "Choppy" Share Market
It's the ultimate goal for so many investors: to build a share portfolio that provides plenty of dividend income in retirement.
If you're anything like me, you're also concerned about preserving your capital and minimising your risks. Fortunately, if you diversify your holdings across different sectors of the economy, you can protect your portfolio from some of the market's gyrations.
Below are four ASX dividend stock ideas to get you started building your diversified income portfolio.
Washington H. Soul Pattinson (ASX: SOL)
If you want consistent dividends, then Soul Patts – as the conglomerate is better known – should be your first stop. The diversified company with interests in coal, telecommunications, building products, health care and biotechnology, retailing, energy and finance as well as a diversified investment portfolio has paid a dividend every single year since 1903. Soul Patts has also increased its dividend each year for the last 16 years, with the company's diverse interests standing it in good stead despite global worries, market crashes and recessions.
Wesfarmers Ltd (ASX: WES)
Wesfarmers is the name behind popular retail brands like Coles, Bunnings Warehouse, Officeworks, Kmart and more. At the current share price, Wesfarmers shares are trading on a forecast fully-franked dividend yield of over 40%. With its recent push into the UK, continuing outperformance of Coles and market leading positions in discretionary retailing, the dividend could grow healthily for many years.
Flight Centre Travel Group Ltd (ASX: FLT)
Brand strength, overseas growth and dividends are on offer with shares of Flight Centre. The company is expanding its US, European and digital footprint, but still offers a 4% fully franked dividend yield. Flight Centre is well-run yet trades at a discount valuation to the market. That discount is likely due to temporary issues which the market seems to think are permanent – which is our opportunity.
Telstra Corporation Ltd (ASX: TLS)
Telstra is arguably one of the ASX's most popular dividend stocks – for good reason. The $60 billion telecommunications heavyweight is the dominant force in mobiles, fixed internet, eHealth and other emerging technology markets. Coupled with a very promising Asian strategy and a cash windfall from the government's NBN Co on its way, Telstra's fully franked dividend looks sustainable.
An even better bet than Telstra…
I happily own Telstra shares. The fully franked dividend looks rock solid, and the company has got some exciting growth opportunities ahead.
But let's face it… valued at at $60 billion, and growing slowly, Telstra shares aren't likely to set the world on fire.
With an even bigger fully franked dividend yield…
Andrew Page, The Motley Fool's resident dividend expert, has just published a new FREE report, The Motley Fool's Top Dividend Stock for 2017, where he names his hands-down BEST dividend stock for 2017.
Not only does this company offer resilient earnings, attractive growth potential and a fat, fully franked dividend yield, unlike Telstra, it also has the potential to generate considerable capital appreciation in 2017 and beyond.
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Date updated: 30 November 2016
This report contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. Please refer to our Financial Services Guide (FSG) for more information. The Motley Fool has a clear and concise disclosure policy. At the time of writing, Bruce Jackson owned shares in Telstra, Retail Food, Wesfarmers and Flight Centre. The Motley Fool, its contractors and employees may own shares in the companies listed above, and those positions may change at any time.
All returns cited are hypothetical and based on the percentage change between the stock price at the time of recommendation and the current or sell price (if the position has been closed) at the time of publication. Brokerage, taxes and any other associated costs are not taken into account. Please remember that investments can go up and down. Past performance is not necessarily indicative of future returns. Performance figures are not intended to be a forecast and The Motley Fool does not guarantee the performance of, or returns on any investment. Any money back guarantee is strictly limited to the subscription price paid for the product. Any and all advice contained in the above content is general advice that has not taken into account your personal circumstances. Please refer to our Financial Services Guide for more information.
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