As the first month of the new financial year comes to a close, the markets are rampaging, and we have seen both the S&P/ASX 200 (INDEXASX: XJO) and the All Ordinaries (INDEXASX: XAO) reach new all-time highs. Although this is an exciting time for anyone with shares in the market, its also a bleak time for those who have cash burning a hole in the proverbial pocket (or low-yielding savings account). Here are 3 ASX dividend payers that I think would be a good place to chase yield right now.
National Australia Bank Ltd (ASX: NAB)
NAB shares have been on a tear ever since its new CEO Ross McEwan was announced a couple of weeks ago. The market is clearly excited about Mr McEwan and I share this sentiment – a highly successful stint at the Royal Bank of Scotland (RBS) shows that he may have what it takes to take NAB to the next level. Of equal importance is that Mr McEwan prioritised dividend payments to RBS shareholders, which bodes well for NAB shareholders over the coming years. I think NAB is the best ASX bank for dividend investors right now and am happy to have NAB shares in my personal portfolio, especially with its current yield of 9.09% (including franking credits).
Woolworths Group Ltd (ASX: WOW)
Woolworths has recently impressed the market with its plans to spin-off its pub and bottle-shop businesses into a separate entity, which may become a substantial dividend payer in its own right (depending on the yet-to-be-decided spin-off mechanism). This has contributed to WOW's price surge over the past month, but I still like Woolworths for its business fundamentals, defensive earnings base and branding moat (not to mention those new Lion King 'Ooshie' toys). WOW shares are currently yielding a 3.74% dividend (including franking credits).
InvoCare Ltd (ASX: IVC)
InvoCare is Australia's largest funeral services provider and (unfortunately for us humans) isn't about to go out of business anytime soon. Saying this, InvoCare prides itself on being able to respectfully cater and care for all needs and services that is asked of it and its customers clearly appreciate this. The company has expanded successfully over the past two decades through both organic growth and a number of acquisitions. IVC shares offer a grossed-up 3.39% dividend on current prices.
Foolish takeaway
All of these dividend payers offer a solid business model and would be a good foundation upon which to build an income-producing ASX portfolio. Although prices of dividend shares are high at the moment, this trend is unlikely to reverse until interest rates start going back up (which might take a while).
