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3 ASX 200 dividend shares for income during the COVID-19 pandemic

If you’re looking for a source of income in this low interest environment, then I would suggest you look to the share market.

Although a large number of shares are conserving cash and suspending their dividends during the coronavirus pandemic, there are still a handful that are expected to continue paying their shareholders.

Three top dividend shares on the S&P/ASX 200 Index (ASX: XJO) that I think would be good options right now are listed below:

Coles Group Ltd (ASX: COL)

The first dividend share to consider is this supermarket operator. I believe Coles is well-positioned for solid growth in the near term thanks to the panic buying that is sweeping through its supermarkets and more people eating from home during the pandemic. Long term I believe its growth prospects are equally solid thanks to its strong market position, cost cutting plans, and focus on automation. Based on its current dividend policy, I estimate that its shares offer a fully franked forward ~4% dividend yield.

Commonwealth Bank of Australia (ASX: CBA)

Another dividend share to consider buying is Commonwealth Bank. Although it is inevitable that Australia’s largest bank will cut its dividend this year, especially given APRA’s recent request, I believe this and the impacts of the coronavirus pandemic on the banking sector have been factored into its share price already. I estimate that Commonwealth Bank will pay a dividend of ~$3.70 in FY 2021, which equates to a forward fully franked ~6% dividend yield.

Wesfarmers Ltd (ASX: WES)

I think Wesfarmers would be a good option due to the quality and diversity of its portfolio and its solid long term growth prospects. In addition to this, its key Bunnings business has been a big winner during the coronavirus pandemic. It has been experiencing strong demand from consumers as they use their spare time to undertake home improvements. Looking further ahead, following the selldown of its stake in Coles, Wesfarmers is cashed up and looks likely to add to its portfolio with earnings accretive deals. Its shares currently offer an estimated forward fully franked 4% dividend yield.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Wesfarmers 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.