With official interest rates remaining on hold at just 2%, the decision to buy high-quality dividend stocks as part of a diversified individual or superannuation portfolio could be more important than ever.
But, I'll admit, it's never easy to know where to start.
So here are three of my favourite ASX dividend stock ideas for new money which you can put on your watchlist today, and start researching for yourself:
- Flight Centre Travel Group Ltd (ASX: FLT) is one of my mid-cap stocks to buy today. In addition to its excellent long-term growth prospects, Flight Centre is offering a fully franked dividend equivalent to 4.1%. While a slowing economy and Aussie dollar may have some impact on the business in the immediate future, with more than $500 million in cash and growing international exposure, I'm confident Flight Centre will be bigger and better five years from now.
- Carsales.com Ltd (ASX: CAR) is Australia's leader in online automotive listings. It has benefitted significantly from two important tailwinds, including more vehicles on the road and technological disruption. In addition to a 3.5% fully franked dividend yield, Carsales.Com enjoys wide profit margins and holds a significant stake in iCar Asia Ltd (ASX: ICQ) – an ASEAN equivalent of carsales.com.au.
- Automotive Group Holdings Ltd (ASX: AHG) is another play on rising car sales. It's Australia's largest automotive retailer and a leading logistics business. The logistics business is currently benefitting from a lower fuel price and despite volatile consumer confidence, automotive retailing continues to grow both organically and acquisitively. At their current price of slightly more than $4, shares of Automotive Group appear reasonably priced and offer a trailing dividend yield of 5.4% – fully franked no less.
