On Tuesday the Reserve Bank will meet to discuss the cash rate once again. Whilst it seems unlikely that the central bank will cut rates this month, I feel another is inevitable early in 2020.
In light of this, I continue to believe that ASX dividend shares are a great way to beat low rates. Here are three that I would buy:
Lendlease Group (ASX: LLC)
Although its shares don’t offer the biggest yield on the local market, I think it is still worth considering. Lendlease is an international property and infrastructure group with operations in Australia, Asia, Europe and the Americas. After a couple of difficult years, I believe it is now well-positioned for solid long-term growth. After all, at end of FY 2019 its development pipeline was approaching $100 billion in project value. At present I estimate that its shares offer a fully franked 4% forward dividend yield.
National Storage REIT (ASX: NSR)
Another option for income investors to consider buying this month is National Storage. This self-storage-focused real estate investment trust owns a network of 168 centres throughout the ANZ region. Whilst this makes it one of the largest in the region, it continues to see plenty of room to grow through developments and acquisitions. I expect this to lead to further solid income and distribution growth for a number of years to come. At present its shares provide a 5.1% trailing distribution yield.
Sydney Airport Holdings Pty Ltd (ASX: SYD)
A third dividend share for income investors to look at this month is Sydney Airport. I think the airport operator is a great option due to its strong market position, pricing power, and history of dividend increases. The good news is that I believe it is well-positioned to continue this positive trend thanks to increasing international tourism and improving domestic tourism trends. At present Sydney Airport’s shares offer a trailing 4.4% dividend yield.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of February 15th 2021
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Sydney Airport Holdings Limited. The Motley Fool Australia has recommended National Storage REIT. 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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