The falling ASX market has created great opportunities for income investors looking for secure moderate capital growth and high dividend yields.
These 4 ASX blue-chip shares have experienced falling prices despite reduced exposure to COVID-19 (coronovirus). To lock in any of these dividend payments, you'll have to purchase these shares before their respective ex-dividend dates (highlighted below).
Origin Energy Ltd (ASX: ORG)
Origin's share price has dropped 8.6% since Monday's opening to close at $7.03 on Thursday. At this price, its 15 cents per share (cps) payment will yield 2.13%. Origin is presently paying a 12-month trailing dividend of 4.27% so this is well in line with expectations.
This company has a price to earnings ratio (P/E) of 12.2. Origin goes ex-dividend on Monday, March 2 and will have to be purchased today to secure the dividend payment. There is no specific pattern to trading after Origin shares go ex-dividend.
Fortescue Metals Group Limited (ASX: FMG)
Amongst the blue chip shares, Fortescue is the king of dividend payments next week. It must also be bought today to lock in the 7.3% dividend yield on yesterday's closing price. Any further downside will only make the yield larger.
This blue chip share has fallen 3% this week to close at $10.77 on Thursday. Fortescue CEO Elizabeth Gaines has noted there has been no impact to shipping schedules and is likely to see similar impacts to Rio Tinto. Over the medium term, I see Fortescue as a growth stock with a lot of potential for capital growth ahead of it.
Bendigo and Adelaide Bank Ltd (ASX: BEN)
Bendigo announced a fully franked interim dividend of 31 cents per share (cps). The company has dropped 4.9% since Monday to close at $9.47 on Thursday. At that price, this interim payment will yield 3.27%. Bendigo has a current 12-month dividend yield of 6.97%.
Over the past 10 years, there has been no discernible pattern to trading once this blue-chip share goes ex-dividend. To lock in these payments, you need to purchase Bendigo before it goes ex-dividend on Friday, March 6.
Rio Tinto Limited (ASX: RIO)
Rio is paying a fully franked dividend of $3.50 per share. The Rio share goes ex-dividend on Thursday, March 5. It has lost 7.3% this week finishing yesterday at $90.41. At this price, the payment will yield 3.87%.
As a London based company, Rio reports a calendar financial year. This, therefore, is the final dividend payment for this ASX blue-chip share for FY20 in Australia. On Thursday's closing price, this will bring Rio's full-year dividend yield to 7.3%.
Rio's earnings report mentions the likelihood of an impact from COVID-19 for Q1 of CY20 and underscores the uncertainty facing all concerned. The report also highlights the Chinese government stimulus to drive recovery.
Rio is presently selling on an earnings multiple (P/E ratio) of around 9 and has consistently delivered moderate capital growth over a 10-year time frame.
