I think it's a great time to be looking at ASX dividend shares right now.
The interest income that you can get from the bank or from bonds is still very low. ASX shares are known for their generous dividend yields, the franking credits boost is just a bonus.
Here are three ASX dividend shares to look at this weekend:
WAM Research Limited (ASX: WAX)
I believe that WAM Research could be one of the best dividend shares on the ASX. It's a listed investment company (LIC).
It has increased its dividend every year since the GFC, there are not many shares with a streak like that. However, it has a materially bigger profit reserve than WAM Capital Limited (ASX: WAM), so the dividend is more likely to be able to be grown or at least maintained.
WAM Research has been able to increase the dividend so well due to the strong long-term returns of its investment portfolio over multi-year periods.
It currently offers a grossed-up dividend yield of 9.8%.
DuluxGroup Limited (ASX: DLX)
DuluxGroup is a large home improvement business.
You have probably used at least one of its brands over the past year or two in your property such as Dulux, British Paints, Selleys, Yates and Cabot's.
It's not an exciting fast-growth business, but every year it sends the revenue, profit and dividend a little bit higher. Management have been able to improve the profit margins just a little more each year, helping profit grow faster than revenue.
I think DuluxGroup's products are fairly defensive and will be resilient even if this housing downturn continues for a long time.
It currently offers a grossed-up dividend yield of 5.8%.
Clime Capital Limited (ASX: CAM)
Clime is a small LIC that invests on the ASX into small caps, medium caps and large caps, it also invests some of the portfolio into overseas shares.
It offers quite diversified exposure with holdings like Rio Tinto Limited (ASX: RIO), Webjet Limited (ASX: WEB), Citadel Group Ltd (ASX: CGL), Facebook and Baidu.
This diversified approach seems to be working. Clime is quite attractive for dividend cashflow because it pays quarterly.
Clime currently has a grossed-up dividend yield of 8.2%.
Foolish takeaway
All three of these shares have been very good dividend payers over the past few years. If I had to choose one share today it would be WAM Research, it's rare for the trailing yield to be so high. However, there is a concern that Labor's franking credit change may harm the attractiveness of WAM Research.
