With record low interest rates and many predictions that we could be heading for a cash rate of 0.5% by next year, things are looking bleak for fixed-interest investors. Savings accounts, term deposits and even government bonds are yielding barely enough to cover inflation, let alone provide their traditional roles of financial security and a decent income.
That leaves dividend paying ASX shares as the next best option for investing for income. So here are three of my favourite ASX dividend shares to buy for income today
Brickworks Ltd (ASX: BKW)
Just this morning, Brickworks delivered its full results for FY19, which included a hefty 38 cent per share final dividend (fully franked) – bumped up 6% from the previous final payout. This gives Brickworks a 3.5% yield on current prices. Although not an especially high starting yield, considering Brickworks has increased its payout every year for the last decade I think this is a reliable company to own for income.
National Australia Bank Ltd (ASX: NAB)
Due to a recent surge in NAB shares, this ASX bank has lost the distinction of boasting the highest yield amongst the 'Big Four' to Westpac Banking Corp (ASX: WBC). Saying this, a 6.2% fully franked dividend is nothing to sneeze at – and will incidentally net you more than triple the return of a NAB term deposit these days. NAB remains a financial powerhouse and one of the best banks to invest in (in my opinion). The appointment of Ross McEwan as CEO recently is also a positive, as Mr McEwan has a distinguished career and history of performance.
Woolworths Group Ltd (ASX: WOW)
Another company to recently deliver a dividend bump, Woolworths is also an appealing income stock in my books. The grocery business is one of the more defensive earning bases to have exposure to, not to mention Woolworths' drinks segment, which the company plans on spinning off in the not-too-distant future – which should return further value to shareholders. Woolworths will pay a $1.07 per share in total dividends to shareholders this year, representing a yield of 2.89% on current prices.
Foolish takeaway
Although these ASX companies aren't offering the highest of starting yields (with the exception of NAB), all offer solid earnings bases and reliability of income, in my view, making all 3 fantastic additions to an income-focused portfolio.
