MENU

3 dividend stocks I’d buy today

The stock market turned into a sea of red yesterday, which hurt everyone’s portfolios. But, it also presented a good opportunity for those investors who have cash to invest. For dividend-seekers, a bonus is that reducing share prices means higher starting dividend yields.

If I were looking to buy dividend stocks today, I’d consider these three:

WAM Capital Limited (ASX: WAM)

WAM Capital is one of the largest listed investment companies (LICs) in Australia. It has outperformed the market over the long-term and pays out a lot of its profit as a dividend.

I think WAM Capital could be a good buy today because it actually has a lot of cash compared to most other LICs. At the end of December 2017, 21.3% of its portfolio was cash. This means two things, that the crash wouldn’t have affected WAM Capital’s portfolio as badly as expected and that it could have used the cash to buy beaten-down opportunities.

WAM Capital is currently trading with a grossed-up dividend yield of 8.9%.

Rural Funds Group (ASX: RFF)

Rural Funds is the only ASX-listed real estate investment trust (REIT) that is purely an agricultural property trust.

I think it’s the best REIT because its farmland assets are very useful with the human population growing and this will require more food, which should drive land values higher.

I like that Rural Funds management have a long-term expectation for the distribution to increase by 4% per year.

Rural Funds is currently trading with a distribution yield of 4.77%.

Sydney Airport Holdings Ltd (ASX: SYD)

Sydney Airport Holdings operates the key Sydney Airport, which acts as the gateway into Australia for a lot of international passengers. That’s why the number of passengers is increasing at a good rate, which is boosting earnings for the company and that’s growing the bottom line by double digits each year.

The company is very generous with its dividend and is currently trading with a dividend yield of 5.29%.

Foolish takeaway

All three shares could be good dividend options, at the current prices I’d probably be inclined to go for WAM Capital because the other two may suffer further as interest rates go up.

I also think this top dividend stock is well worth a look for income.

OUR #1 dividend pick to grow your wealth over the new financial year is revealed for FREE here!

Financial year 2018 is here and The Motley Fool’s dividend detective Andrew Page has revealed his must buy dividend share to grow your wealth in 2018.

You might not know this market leader's name, but it's rapidly expanding into a highly profitable niche market here in Australia. Even better, the shares boast a strong, fully franked dividend that should balloon in the years to come. In other words, we're looking at the holy grail of incredible long-term growth potential AND income you can watch accruing in your account in real time!

Simply click here to grab your FREE copy of this up-to-the-minute research report on our #1 dividend share recommendation now.

Motley Fool contributor Tristan Harrison owns shares of RURALFUNDS STAPLED and WAM Capital Limited. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED and Sydney Airport Holdings 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 Bruce Jackson.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…

Including:

The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!