As we edge towards the end of the year, I'm sure many investors minds' are not entirely focused on the stock market – given the frivolities of Christmas are probably still fresh in most minds (and bellies). Also helping would be the relative calm of the markets in recent weeks, especially compared with the same period last year.
However, if you wish to do some late Christmas spending and buy some ASX dividend-paying shares before the New Year, time is quickly running out. So here's how I would spend $20,000 on ASX income shares to cap off 2019.
Australia and New Zealand Banking Group (ASX: ANZ)
Like most of the ASX banks, ANZ shares are finishing the year at a pretty uninspiring price. Since ANZ started 2019 at $23.86, today's share price of $24.72 (at the time of writing) indicates a year of meagre growth at around 3.6%.
Still, I think compared with some of its banking brethren like Westpac Banking Corp (ASX: WBC), ANZ is offering solid income potential not weighed down with capital raising and massive fines. Even with the recently announced franking cut, ANZ shares are offering a grossed-up 8.33% dividend yield. That's pretty hard to look past for an income investor today, in my view.
Sydney Airport Holdings Pty Ltd (ASX: SYD)
Sydney Airport is another income favourite for ASX dividend investors and might be worth a look today as the stock goes ex-dividend. Whilst you won't be eligible for the company's February dividend, the accompanying 3.92% drop in SYD's share price that we've seen today might be a good buying opportunity if you've been hoping to add this stock to your portfolio for the long term. SYD shares are currently offering a starting dividend yield of 4.42%.
VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)
Something a little more exotic to consider would be this ETF from VanEck. MOAT tracks a basket of US stocks that have been selected for possessing a durable competitive advantage (or moat). Some of its current holdings include shoe-maker Nike, cereal-king Kellogg and Warren Buffett's own Berkshire Hathaway.
Many of MOAT's 48 holdings pay dividends, so these get passed through to the ETF's unitholders, who received a 2.3% distribution yield over the past year. Thus, for a source of diversified dividend income, I think MOAT is a great candidate for an income portfolio today.
Foolish Takeaway
I think all three of these ASX shares are fantastic options if you were thinking about deploying some capital into the markets before year's end. But you better hurry up!
