ASX dividend shares are some of the best yielding stocks in the world – especially when you combine them with the franking credits that often come attached.
But ultra-low interest rates that Australia has had for the past year or two have pushed the share prices of many formerly high-yielding ASX dividend shares so high that the yields they're now offering are at all-time lows.
Just look at the famous blue-chip Woolworths Group Ltd (ASX: WOW). Far from being a dividend heavyweight, it currently offers investors a paltry dividend yield of just 2.37%.
That's why I think REITs (Real Estate Investment Trusts) are a great place to find ASX dividend income these days. Here are two that offer generous shareholder payments on current prices.
Stockland Corporation Ltd (ASX: SGP)
Stockland is a diversified company that owns and operates a wide variety of properties across different sectors. From shopping centres and housing estates to business parks and retirement homes, Stockland has its fingers in many different pies. Therefore, I think it's one of the most diversified REITs out there and thus, a well-rounded investment for obtaining a solid stream of dividend income.
Today, Stockland shares offer a yield on cost of 5.49% – and that's despite the Stockland share price appreciating around 33% over the past year. As a result, I think this company is a rock-solid buy for dividend income today.
Scentre Group (ASX: SCG)
Scentre is another REIT I think would make a great addition to any income-focused portfolio today. This REIT owns and operates the Westfield-branded chain of shopping centres across Australia and New Zealand.
Everyone knows the struggles that traditional brick-and-mortar stores are facing these days in an Amazon-dominated world. But I think Scentre has been adapting very well by focusing on more 'experience' related attraction in its malls like dining and cinemas that are more difficult to disrupt. Thus, I think Scentre has a bright future ahead of it and will continue to profit from the famous Westfield name.
Today, Scentre shares offer a trailing yield of 5.86%, which is an attractive return on our cash in today's market. Thus, I would happily have Scentre as a part of a well-diversified dividend portfolio, especially with the current share price.
Foolish takeaway
From looking at these two REITs, I see two solid income stocks that are somewhat unappreciated by the market at the present time. REITs carry their own risks (as does any investment), but I think including these kinds of income stocks in your portfolio would be beneficial for any income-focused investor in the current market environment.
