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3 ASX dividend shares I’d buy for 2020 and beyond

It’s getting harder to find good sources of income these days because of lower interest rates and lower growth rates in Australia and around the world.

WAM Leaders Ltd (ASX: WLE) 

WAM Leaders is a listed investment company (LIC) operated by Wilson Asset Management to target the larger businesses on the ASX.

Many of its largest holdings are the recognisable names like the banks, miners, CSL Limited (ASX: CSL), Woolworths Group Ltd (ASX: WOW) and Wesfarmers Ltd (ASX: WES).

Since inception in May 2016 the WAM Leaders’ gross portfolio performance has been better than the S&P/ASX 200 Accumulation Index by an average of 1.2% per year.

The LIC has been using that good performance to pay a steadily growing dividend since FY17. It currently has a grossed-up dividend yield of 7%.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) 

Soul Patts is an investment conglomerate that has been operating for over 100 years. It’s a rare company on the ASX in that it has increased its dividend each year since 2000, which is great income security for shareholders.

The company aims to buy assets that offer uncorrelated returns, it tries to be contrarian and be long-term focused.

Soul Patts has been very successful over the long-term, outperforming the index and re-investing into good opportunities.

It currently has a grossed-up dividend yield of 3.7%.

Rural Funds Group (ASX: RFF) 

Rural Funds is a real estate investment trust (REIT) specialising in farmland.

It owns various farm types including cattle, poultry, almonds, macadamia, cotton and vineyards which are located in different states and climactic conditions. It’s a good diversification strategy.

The share price has been rocked recently by negative attacks from overseas outfits questioning the asset value of Rural Funds, but the REIT has defended itself and continues to produce pleasing cash returns for shareholders.

Rural Funds offers a FY20 distribution yield of 6.1%.

Foolish takeaway

Each of these businesses are trading at attractive valuations compared to their assets. Soul Patts has excellent dividend stability whilst Rural Funds has a good starting yield and aims to increase the distribution by 4% each year, these would be the two I’m drawn to.

But these top dividend stocks could be even better buys for income over the coming years.

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Tristan Harrison owns shares of RURALFUNDS STAPLED and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED, Washington H. Soul Pattinson and Company Limited, and Wesfarmers 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.

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