With interest rate cuts starting to flow through into our mortgages and bank accounts, it's an important time to take a refreshing look at your income-producing assets. The S&P/ASX 200 (INDEXASX: XJO) index is already up nearly 4% since the June rate decision was announced and stock prices are likely to be further inflated by the low-rate environment (at least in the short-term), so now might be the time to readjust and rebalance your dividend paying shares.
Here are three ASX dividend shares to have a look at for your portfolio:
National Australia Bank Ltd. (ASX: NAB)
This banking behemoth has recently cut its dividend from 99 cents per share to 86 cents. Despite this, NAB shares are currently yielding 9.75% grossed-up, which is the largest dividend of the 'Big Four' banks and one of the biggest yields you can get on the ASX. While I would not expect wild capital growth or even a dividend increase anytime soon, its still a lot better than a NAB term deposit.
Ramsay Health Care (ASX: RHC)
Ramsay Health Care is the $14 billion company behind some of the biggest and most popular private hospitals in the country. It has built a solid reputation on providing high quality services at good prices. It manages this by wielding its size and scale in negotiations with private health insurers and other suppliers to maintain a low cost basis. Although Ramsay is only yielding 2.05% on current prices, it is well positioned to harness the strong tailwinds of the healthcare sector for decades to come and has an ambitious international expansion program. I look at Ramsay as a great dividend-growth stock to buy and hold.
SPDR S&P Global Dividend Fund (ASX: WDIV)
This exchange-traded fund (ETF) is well worth a look if you're an income investor. Run by the reputable SPDR group, WDIV seeks to track an index of global companies that have had stable or increasing dividends every year for the last 10 years (known as 'dividend aristocrats'). It is weighted 22% to Canadian companies, 21% to US companies and 15% to UK companies, with 15 other countries (including Australia) making up the remainder, giving great income diversity in one stock (in my opinion). WDIV is currently yielding 4.92% and has a management expense ratio of 0.5%.
Foolish takeaway
All of these options are a great shares to incorporate into an income-producing portfolio. My favourite would be WDIV – in my opinion a fantastic and diversified core ETF to build a dividend portfolio around.
