Although many ASX investors (especially those who love fast-growing tech shares) don't pay too much attention to dividends, there's no doubt having cashflow coming in from your investments is a nice way to augment your returns – you can even reinvest your dividend automatically with many ASX companies, ensuring your dividends compound over time.
So here are 3 ASX shares that I think would provide a nice stream of cashflow in an ASX portfolio.
Scentre Group (ASX: SCG)
Scentre is a REIT (Real Estate Investment Trust) that owns all of the Westfield shopping centres across both Australia and New Zealand. In this age of Amazon and online shopping investors have become highly wary of physical retail stores and the centres that house them. But I think Scentre is bucking the trend quite well, and has made a huge effort to turn their shopping centres into 'experience centres' (their words). This involves placing more emphasis on fine dining, entertainment like cinemas and music and children's activities to increase the appeal and experience of going to a Westfield. Scentre currently offers a nice 4.32% dividend yield on current prices.
Westpac Banking Corp (ASX: WBC)
Westpac has had a fantastic run lately, making a new 52-week high just 2 weeks ago. Despite this, WBC shares are still offering a meaty 6.33% fully-franked dividend yield if one was to buy in today – one of the largest on the ASX and triple what you can get from a Westpac term deposit right now. Our ASX banks are famous for their huge cash flows, happily passed onto shareholders through dividends, and so I think Westpac is another great stock to own for cashflow.
Premier Investments Ltd (ASX: PMV)
This company owns several prominent retailing brands, including Jay Jays, Just Jeans, Smiggle and Peter Alexander. The latter two are doing particularly well lately and helped Premier post an impressive 10.8% rise in underlying profits just this morning. This has also enabled Premier to rollout an impressive dividend yield of 3.8% on today's prices (it was closer to 4.5% yesterday before Premier shares jumped 17% this morning). For an ASX retailer, I think Premier offers one of the best yields out there.
Foolish takeaway
I think these 3 ASX dividend shares would do well in any portfolio by providing a strong stream of dividend cashflow. I think Scentre is providing the best value on today's prices, but all 3 are quality ASX businesses that would serve any shareholder well.
