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How to boost your income with these 3 ASX dividend shares

Credit: GotCredit

Investing in a diversified portfolio of high quality, dividend paying stocks is one of my favourite ways of generating passive income.

Here are three stocks that I think will help you generate income:

Spark New Zealand Ltd (ASX: SPK), the New Zealand-based telco keeps growing its mobile market share and has a relatively strong balance sheet that can be used for future capital investment. Spark’s sub-brands Big Pipe, Blue Sky, Slingshot and Skinny mobile are also quite popular with price sensitive consumers and backpackers in New Zealand. The company is trading at a PE ratio of 16 and a dividend yield of 6.9%.

Brambles Limited (ASX: BXB), which operates in more than 50 countries around the world, has got a supply chain network to envy. Its status as the largest global provider of pallet and reusable plastic crate pooling services provides it with a strong competitive advantage and there is plenty of room for growth, particularly in emerging markets. I wouldn’t be worried about its PE ratio of 19 and dividend yield of 2.9% which may appear low. In my view, it is a good quality stock that can help anchor a diversified portfolio.

Ramsay Health Care Limited Fully Paid Ord. Shrs (ASX: RHC), the private healthcare operator, is still over 20% down from its $81 share price high in September 2016 but I think the long term fundamentals remain strong and this represents a buying opportunity. Ramsay remains Australia’s largest private hospital operator with operations in the United Kingdom, France, Indonesia, and Malaysia. Despite a current dividend yield of 2.2%, it still has a 17% 10-year average annual dividend growth rate and I think there is plenty of room for growth in the long term.

In addition to the stocks above, I like companies that have high dividend yields and are expected to continue increasing their dividend payments at a sustainable payout ratio. This has a compounding effect and can really grow your wealth over the long term. This report prepared by our team of experts identifies the ASX companies that are set to raise dividends.

Breaking news: ASX companies set to raise dividends!

It's been a nail-biter of a reporting season here in the first half of 2018.

But the real action, in my opinion, is what companies are doing with dividends.

What does this mean for you? Well there is one stock I've found that could very well turn out to be THE best buy of 2018. And while there's no such thing as a 'sure thing' when it comes to investing - this ripper might come as close as I've ever seen.

Click here it's FREE!

Motley Fool contributor Kevin Gandiya has no position in any of the stocks mentioned.

You can follow Kevin on Twitter @KevinGandiya.

The Motley Fool Australia has recommended Ramsay Health Care 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.

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