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Should you buy Westpac and these ASX dividend shares?

Luckily in this low interest rate environment there are a large number of quality dividend shares trading on the ASX that can solve your income needs.

Three top dividend shares that I would buy today are listed below. Here’s why I like them:

BHP Group Ltd (ASX: BHP)

I think that this mining giant would be a good option for income investors that are not averse to investing in the resources sector. Due to the quality of its operations and the high levels of free cash flow they are generating, BHP remains my favourite option in the sector by some distance. And with management likely to return the majority of its free cash flow to shareholders, I estimate that its shares currently provide a fully franked forward ~6% dividend yield.

Lendlease Group (ASX: LLC) 

This international property and infrastructure company could be a good option for income investors. Whilst it is no longer the bargain buy that it was at the start of the year, I still see a lot of value in its shares for buy and hold investors. Especially given how positive its long-term outlook has become after announcing a ~$20 billion multi-year project with tech giant Google in the United States. At present I estimate that its shares offer a fully franked 3.9% FY 2020 dividend yield.

Westpac Banking Corp (ASX: WBC)

If you don’t have meaningful exposure to the banking sector then I think Australia’s oldest bank would be worth considering. While low rates and potential changes to capital requirements in New Zealand are putting pressure on its dividends, I’m optimistic that the improving housing market will limit any dividend cuts to just a few cents. Based on this, I estimate that its shares still provide a fully franked forward 6.3% dividend yield.

But if you're not a fan of the banks then take a look at these outstanding dividend shares which have been tipped as must buys.

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Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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