Why I would buy NAB and these ASX dividend shares

Westpac Banking Corp (ASX:WBC) has tipped the cash rate to be taken even lower. So buy these ASX dividend shares…

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

According to the latest Westpac Banking Corp (ASX: WBC) Weekly economic report, its economists continue to forecast another cash rate cut by the Reserve Bank.

The banking giant believes the cash rate will be taken down to 0.5% by March 2020. After which, it expects rates to stay at this level until at least the end of 2021.

In light of this, it looks likely that income investors will have to contend with low rates for some time. But don't worry because the ASX is here to save the day with its plethora of dividend shares. Three dividend shares that I would consider buying this week are listed below:

National Australia Bank Ltd (ASX: NAB)

If you don't already have exposure to the banking sector, then I think NAB would be worth considering this month. Especially with the housing market looking likely to rebound in 2020. If this happens I believe it could drive solid mortgage loan growth and support its bottom line. I estimate that its shares currently offer a fully franked 6% forward dividend yield.

Stockland Corporation Ltd (ASX: SGP)

Another dividend share to consider is this diversified Australian property company. It owns, manages and develops retail centres, workplace and logistics assets, and residential and retirement communities. This year it is forecast to increase its distribution to 27.8 cents per unit, which works out to be a forward 6.1% distribution yield.

Transurban Group (ASX: TCL)

Finally, I think this toll road operator is one of the best dividend shares on the ASX for income investors. This is due to the quality of its assets, their strong pricing power, and increasing traffic. Combined with recent acquisitions and developments, I believe it is well-placed for solid long term income and distribution growth. This year management plans to increase its distribution to 62 cents per security, which equates to a forward 4.2% forward yield.

Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia owns shares of and has recommended Transurban Group. The Motley Fool Australia owns shares of National Australia Bank Limited. 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.

More on ⏸️ Dividend Shares

A boy hold money and dressed in business suit next to money bags on a desk, indicating a dividends windfall
⏸️ Dividend Shares

The Accent (ASX:AX1) dividend has lifted by 22%

The company will reward shareholders with an increased dividend...

Read more »

a woman sits in the driver's seat of a car with her arm resting on the door with a small smile on her face, looking out of the car.
⏸️ Dividend Shares

Carsales (ASX:CAR) share price records a modest rise on dividend slash

Australia's largest online automotive and marine classifieds business notches a conservative share price rise on its latest report.

Read more »

A young entrepreneur boy catching money at his desk, indicating growth in the ASX share price or dividends
Bank Shares

ASX 200 bank shares to follow suit after CBA dividend hike: expert

Dividend investors rejoice! This expert expects more dividends to come from ASX 200 bank shares...

Read more »

sad looking petroleum worker standing next to oil drill
Share Fallers

AGL (ASX:AGL) dividend slashed. Share price down 3% on Thursday

More headwinds for the energy giant as its dividend is now in the spotlight.

Read more »

A girl looks through a microscope at money.
⏸️ Dividend Shares

The ANZ (ASX:ANZ) share price has only gained 10% in 5 years. But have the dividends paid off?

We do the math to see if it has been worth investing in ANZ shares over the long term...

Read more »

man laying on his couch with bundles of money and extremely ecstatic about high dividend returns
⏸️ Dividend Shares

The NAB (ASX:NAB) share price is flat 5 years on. But have the dividends paid off?

We calculate if it has been worth investing in NAB shares over the long run...

Read more »

two children dressed in business attire with joyous, wide-mouthed expressions count money at a desk covered in cash and sacks of money either side.
⏸️ Dividend Shares

Top-10 ASX dividend share delivers market-thumping share price gains

The Holy Grail for income stocks is to return strong capital gains as well

Read more »

happy woman looking at her laptop with notes of money coming out representing financial success and a rising share price and dividend yield
⏸️ Dividend Shares

Mining shares in the ASX 200 might unearth US$26b worth of dividends

Are shareholders about to dig some dividends?

Read more »