The S&P/ASX 200 Index (ASX: XJO) closed 6.4% lower today and the market has now declined by over 30% over the last few weeks, well into bear market territory.
A lot of investors are asking the question of whether we have finally hit the bottom of the market.
I wish I knew the answer to that. The truth is that nobody really knows. It is quite possible that we have, while also quite possible that we will see some further losses over the months ahead.
However, what we do now know for certain is that the price-to-earnings (P/E) ratios of most companies on the ASX are now much lower (although investors should use trailing P/E ratios with caution right now). This means that companies can now be purchased at much more favourable prices.
In fact, I believe that a lot of ASX shares are looking quite cheap. When the market does eventually bounce back, share investors are well-positioned to capitalise!
I am particularly attracted to high-yielding ASX dividend shares right now because as their share prices have fallen, their dividend yields have gone up even higher.
With that in mind, here are three of my top ASX dividend share picks right now!
BHP Group Ltd (ASX: BHP)
BHP shares closed 3.8% lower today and are down by around 30% since the beginning of this ASX crash on February 20. The company is now paying a very attractive fully franked trailing dividend yield of 7.85%, which is equivalent to a grossed-up yield of 11.21%.
It is not very often that investors get the opportunity to purchase shares in a blue-chip global miner with those types of yields. In mid-February, BHP announced its half-year results for FY 2020, where it revealed attributable profit of US$4.9 billion which was up 39% from the prior period.
Wesfarmers Ltd (ASX: WES)
I am attracted to Wesfarmers right now because of its high level of diversification, which provides an extra buffer to any market volatility.
Wesfarmers has a rock-solid balance sheet with a portfolio of cash-generating businesses in strong positions. The group's Bunnings business has grown strongly over the past decade, evolving into one of Australia's largest and most successful retailers. Wesfarmers shares are currently trading with a fully franked trailing dividend yield of 4.47% (6.39% grossed-up).
Macquarie Group Ltd (ASX: MQG)
Although Macquarie does have relatively high exposure to international markets compared to our big four Aussie banks, it is now a much more diversified and balanced business than what it was during the global financial crisis. Macquarie has also outperformed the big four banks over the last 10 years with regards to annual profitability growth.
With a very sharp fall in its share price of 12.86% today, Macquarie currently offers investors a very attractive trailing dividend yield of 6.7%, partially franked.
