If you're looking to invest in dividend shares, then I think the three listed below would be great options.
This is because, during these uncertain times, these companies look well-placed to continue paying their dividends as normal.
Here's why I would buy them for income:
Rural Funds Group (ASX: RFF)
Thanks to the quality of its portfolio and long term tenancy agreements, this agriculture-focused property group remains well-positioned to continue growing its distribution during the pandemic and beyond. Rural Funds recently reaffirmed its distribution guidance of 10.85 cents per share in FY 2020 and then 11.28 cents per share in FY 2021. This equates to yields of 5.85% and 6.1%, respectively.
Telstra Corporation Ltd (ASX: TLS)
Another option to consider is Telstra. I think the telco giant is a great income option due to its generous yield and defensive qualities. The latter has been on show in FY 2020, with Telstra one of only a handful of companies that has been able to reaffirm its guidance. I believe this guidance positions the company well to maintain its 16 cents per share dividend this year. This equates to a fully franked 5.15% dividend yield. And with its headwinds easing and T22 strategy bearing fruit, I suspect a return to growth could be just a couple of years away.
Wesfarmers Ltd (ASX: WES)
A final dividend share to buy could be conglomerate Wesfarmers. It is the company behind the likes of Bunnings, Kmart, Catch, and a wide range of industrial and chemical businesses. It also has a sizeable cash balance which looks likely to fund acquisitions in the near future. Combined, I believe Wesfarmers has a solid and diverse business which is likely to deliver growth in earnings and dividends whatever economic cycle we are in. At present I estimate that its shares offer a FY 2021 dividend yield of approximately 4%.
