2020 has been a crazy year so far for ASX dividend shares (as well as the world).
We have seen formerly 'safe' income shares like Sydney Airport Holdings Pty Ltd (ASX: SYD) and Ramsay Health Care Limited (ASX: RHC) suspend 2020 dividend payments. Others are likely to follow.
This isn't good for anyone, but those who rely on dividend income to fund their retirement are especially at risk.
So here are 3 ASX dividend shares I would feel comfortable adding to a retirement portfolio in 2020:
Coles Group Ltd (ASX: COL)
Coles has been one of the ASX shares in the spotlight during this coronavirus crisis. Panic buying of food, toilet paper and other essentials at supermarkets like Coles has made headlines around the country. Coles is a mature, consumer staples business with an established market share in its industry – all great characteristics to have in a retirement portfolio share.
Fortunately for Coles shareholders, I think this company's 2020 dividend payments are secure due to the importance customers are placing on being well stocked-up with essentials in this crisis. On current prices, Coles shares are offering a trailing, grossed-up dividend yield of 4.77%. As such, I think this is a great ASX share to have in a retirement portfolio.
Fortescue Metals Group Limited (ASX: FMG)
Fortescue shares have held up remarkably well in 2020 so far and are even ahead of where they started the year. This company is one of the ASX's largest iron miners and is offering a trailing dividend yield of 8.71% on current prices. ASX resources shares like Fortescue are notoriously inconsistent when it comes to dividend payments, following more of a 'feast-and-famine' approach than most dividend shares out there.
Still, I think it's a very useful share to hold in a retirement portfolio – you never know when iron ore prices will appreciate and give you a dividend windfall.
WAM Research Limited (ASX: WAX)
WAM Research is a listed investment company famous for its high dividend payments. It is able to distribute these by investing in small to mid-cap ASX shares that it sees as offering growth.
On current prices, WAM Research shares are offering a fully franked 8.48% dividend yield, which the company can cover for at least 2 years based on their current profit reserves. That's some juicy income complete with franking credits on offer there – making this (in my view) an ideal ASX dividend share for a retirement portfolio in 2020.
