With all the volatility that the S&P/ASX 200 Index (INDEXASX: XJO) and broader global share markets have displayed over the past few weeks, I think it's time to discuss some top-notch ASX dividend shares to buy today.
Dividend-paying shares are great to hold through thick and thin, as the income they pay comes through the door no matter what's happening with share prices – smoothing the returns from your portfolio.
So here are three I think are looking good today.
Australia and New Zealand Banking Group (ASX: ANZ)
The ANZ share price hasn't performed too well over the past two weeks, but I think that makes it a perfect stock to add to your dividend portfolio today. Although ANZ shares are up over 1% today, the share price is still very close to its 52-week low. That means you are getting a trailing dividend yield of 6.82% on the current share price – which grosses-up to 8.86% with ANZ's partial franking.
With such a robust yield, I think ANZ shares would be a great addition to an income portfolio on these prices. The banking sector is facing headwinds from low interest rates at the current time, but I think ANZ's healthy yield offers some compensation for this risk.
Transurban Group (ASX: TCL)
Another ASX dividend share to consider is this toll-road titan. Transurban owns/operates a network of tolled motorways across major cities in Australia and North America. This gives the company enormous earnings certainty as traffic volumes are fairly inelastic and easy to predict in any given year.
This, in turn, lends a lot of security to Transurban's dividends, which investors have certainly been appreciating in this era of record-low interest rates. Today, you can join the party with a starting yield of 3.92%.
Telstra Corporation Ltd (ASX: TLS)
A final share to consider today is Telstra. This telco has also suffered a pullback in recent weeks and is going for $3.55 today (at the time of writing). I think Telstra is another company with a robust earnings base from which to pay dividends from – we all love our data plans and internet a little too much these days!
Telstra is also investing heavily in a new 5G network, which has the potential to become a potent new source of income for the company over the next few years as well. Today though, Telstra is offering a grossed-up dividend yield of 6.43% (including the special nbn dividends) – making it a great ASX dividend share for an income portfolio.
