The Motley Fool

3 ASX dividend shares I would buy for cash flow

One of the best things about ASX shares is the strong cash flow of dividends and franking credits that can hit your bank account every six months.

Although many ASX shares don’t pay dividends, many more do. These payments can be a significant contributor to your overall returns, especially if you choose to reinvest your dividends over time.

So, here are 3 ASX dividends that I would buy for strong cash flow today.

Westpac Banking Corp (ASX: WBC)

As one of the ASX big four banks, Westpac has always been a popular choice for income investors. The recovery in housing prices, as well as distance from the 2018 banking Royal Commission, has led the Westpac share price up 17% this year so far (and that’s not even including dividends).

Speaking of dividends, Westpac shares are offering a starting yield of 6.54% on today’s prices, which scales up to 9.34% if you include franking.

Thus, I think Westpac is a great share to buy for dividend cash flow today.

Woolworths Group Ltd (ASX: WOW)

Woolworths has also had a solid year, with WOW shares up a huge 27.3% for the year so far (WOW indeed). This has reduced the starting yield you can get from Woolworths shares today, but then again, a 2.75% dividend (3.9% grossed-up) is a lot better than your average savings account.

I like Woolworths’ domination of the Australian grocery sector, as well as their continuing promotional innovation, which has been boosted by the recent Discovery Garden and Lion King toy campaigns. This makes Woolworths (in my opinion) a great buy for current and future cash flow.

Vanguard Australian Property Securities Index ETF (ASX: VAP)

This exchange traded fund (ETF) tracks a group of ASX REITs (real estate investment trusts). REITs own property assets like shopping centres and retirement villages. REITs pass almost all of their rental income onto their shareholders, making this ETF a great option for those investors seeking regular and reliable cash flow.

Some of the REITs found in VAP include Goodman Group (ASX: GMG) and Scentre Group (ASX: SCG). VAP is offering a starting yield of 4.24% today.

Foolish takeaway

In my view, all 3 of these ASX shares are great buys for strong cash flow. All offer nice dividends, as well as full franking credits for Woolworths and Westpac. I like the diversified income stream that VAP offers, so that’s my pick of the bunch today!

NEW. The Motley Fool AU Releases Five Cheap and Good Stocks to Buy for 2020 and beyond!….

Our experts here at The Motley Fool Australia have just released a fantastic report, detailing 5 dirt cheap shares that you can buy in 2020.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading over 40% off it's high, all while offering a fully franked dividend yield over 3%...

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click here or the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.


Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Scentre Group. 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.