If you want income you should forget about Australia and New Zealand Banking Group (ASX: ANZ)! I think you should go for the ASX dividend shares I'm going to mention in this article instead.
In its FY20 half-year result ANZ decided to defer its dividend. There is some speculation that the big bank may decide not to pay an interim dividend at all as the economic damage unfolds.
Top ASX dividend shares to buy:
Duxton Water Ltd (ASX: D2O)
Duxton Water is the only company on the ASX that purely provides exposure to water entitlements. The value of water doesn't have much to do with the economy, it's more to do with rainfall and agricultural factors.
The company is trying to increase the amount of its water portfolio that's leased to provide a visible and stable revenue stream.
The Board reaffirmed its aim to pay 5.9 cents per share of dividends over the next 12 months. This equates to a grossed-up dividend yield of 6.5%. That's solid for an ASX dividend share in this environment.
It's currently trading at a large discount to its net asset value (NAV), which gives a good margin of safety. Years of higher rainfall will be tough for water values, but the trend is higher over the long-term with more high-use crops like almonds.
Brickworks Limited (ASX: BKW)
Brickworks is arguably one of the best ASX dividend shares. It has grown or maintained its dividend every year for over four decades. The coronavirus is clearly going to be a big problem for the construction industry over the next 12 months, so building product operating earnings in Australia and the US could fall significantly.
But it's the other segments of Brickworks' business that I think can keep the dividend record going nicely.
Both its investments segment and the industrial property trust provide reliable and growing cashflow. These two asset groups can essentially support the dividend and their underlying values completely back up Brickworks' market capitalisation.
Brickworks is not far off a century old, it was formed during the Great Depression. It currently offers a grossed-up dividend yield of 6.25%.
Rural Funds Group (ASX: RFF)
There are few ASX dividend shares that may be able to provide as reliable income as Rural Funds over the next decade.
It's an agricultural real estate investment trust (REIT) that owns a variety of farms including cattle, cotton, vineyards, macadamias and almonds. The tenant carries the operational risks.
Management aim to increase the distribution by 4% a year. That's a solid number considering what inflation has done over the last few years. It's able to do this because some of the rental contracts are based on CPI inflation and the others are based on a fixed 2.5% increase, plus market reviews. It also regularly invests in improvements at its farms.
The REIT has already reaffirmed its FY21 distribution guidance of 11.28 cents per unit. This equates to a yield of 5.8%.
Foolish takeaway
I think all three of these shares can provide much more reliable dividends than ANZ over the long-term. Duxton Water may be a bit cyclical, but Brickworks and Rural Funds could be two reliable income kings over the coming years.
