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My best 3 ASX dividend shares to buy right now

Dividend shares are in high demand right now with very low Australian interest rates.

I think the best dividend shares are the ones with decent yields and are trading at good prices. That’s why I’m attracted to these three shares:

Growthpoint Properties Australia Ltd (ASX: GOZ) 

Growthpoint Properties is a real estate investment trust (REIT) that owns 58 properties in the industrial and office sectors, 69% of the properties are industrial.

Its biggest three tenants in terms of passing rent are Woolworths Group Ltd (ASX: WOW), NSW police and Commonwealth Bank of Australia (ASX: CBA).

It has a 98% occupancy rate and has a forecast FY20 distribution yield of 5.5% with a weighted average lease expiry (WALE) of almost five years. It has increased its distribution each year since 2010. There’s a lot to like about this REIT. 

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

Soul Patts has grown its dividend every year since 2000 and it currently has a forward grossed-up dividend yield of 3.8%.

Its share price has generally been tracking the underlying value of its assets. The recent TPG Telecom Ltd (ASX: TPM) win has boosted its Soul Patts’ asset value and is likely to unlock a bigger stream of dividends to Soul Patts over the coming years.

Cross-holding investment partner Brickworks Limited (ASX: BKW) is expecting to see better conditions over the next year as the construction market returns to normal.

I think Soul Patts is one of the most dependable dividend shares on the ASX, which is why I think it’s one of the best to think about.

Propel Funeral Partners Ltd (ASX: PFP) 

Propel Funeral Partners is the second biggest funeral operator in Australia and New Zealand. The industry provides a defensive source of earnings, which should also translate into a defensive dividend.

There is also projected growth for the sector, death volumes are expected to grow by 1.4% per annum between 2016 to 2025 and then increase by 2.2% per annum from 2025 to 2050.

If Propel can grow its volumes and price per funeral it should mean steadily growing earnings for the company. It started paying a dividend in 2018 and increased it in 2019.    

The company has a trailing grossed-up dividend yield of 4.5%.

Foolish takeaway

I think each of these dividend shares have very attractive outlooks for dividend growth. I think Soul Patts has the most defensive dividend, though both Propel and Growthpoint could be good ways to diversify your investment income.

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 June 30th

Motley Fool contributor Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Brickworks and Propel Funeral Partners Ltd. 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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