The Motley Fool

3 all-star ASX dividend shares looking cheap today

The ASX is falling further today. At the time of writing, the S&P/ASX 200 Index (INDEXASX: XJO) is down another 1.9% to 6,736 points.

Whilst this is a painful day to have capital invested in the markets, it’s also a good time to pick up some ASX dividend shares. Good quality dividend-paying shares are a great kind of investment to buy in a dip, as you can get a higher yield and stream of cash flow for your money.

So, here are three ASX dividend shares I’m watching closely today.

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

Soul Patts has one of the best dividend records on the ASX – annual increases every year since 2000. It’s a broadly diversified conglomerate that owns other ASX companies like TPG Telecom Ltd (ASX: TPM).

Last week, Soul Patts shares were asking over $23 – today, you can pick some up for $20.48. That’s a great deal in my view. At the current share price, Soul Patts is currently offering a 2.83% yield, which grosses up to 4.04% with full franking. That’s a pretty good offer (in my opinion) for a company with such an impressive streak of rewarding its shareholders.

Coles Group Ltd (ASX: COL)

Another dividend-payer that’s dropped heavily in the last week has been Coles. After topping out at over $17 last week, Coles shares are going for just $15.27 today. That gives this supermarket giant a trailing dividend yield of 3.54% – which again grosses-up to 5.06% with full franking.

When you compare this yield to Coles’ rival Woolworths Group Ltd (ASX: WOW), I think Coles is by far the better buy for yield today (Woolies is offering a forward dividend yield of just 2.67% in comparison).

Coles is a great defensive company with a recession-resistant earnings base, which might make it a good investment in today’s falling market, in my view.

Westpac Banking Corp (ASX: WBC)

Perhaps the most risky bet on today’s list, but one still worth a mention in my view is Westpac, our second largest ASX bank and oldest public company. Westpac shares are today down 1.81% (at the time of writing) to $24.62. At this price, Westpac offers a trailing dividend yield of 7.07% (or 10.1% grossed-up).

This massive yield comes with a caveat – a lot of commentators are expecting Westpac to again trim its dividends this year, so there is no guarantee that you will ‘lock this yield in’ if you buy Westpac shares today. But I still think this bank will continue to be a market-beating ASX dividend payer even if a trim does come shareholders’ way.

5 stocks under $5

We hear it over and over from investors, "I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" And it's true.

And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!

*Extreme Opportunities returns as of June 5th 2020

Motley Fool contributor Sebastian Bowen 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. 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.

Related Articles...

Latest posts by Sebastian Bowen (see all)