Looking for a source of income in this low interest rate environment? Then the three ASX dividend shares listed below could be great options.
I believe all three are well-positioned to continue paying dividends during the pandemic and then grow them in 2021. Here's why I would buy them:
BWP Trust (ASX: BWP)
The first dividend share I would suggest investors consider buying is BWP. It is a real estate investment trust investing in and managing commercial properties throughout Australia. The majority of its properties are large format retail properties, which are predominantly leased to home improvement and outdoor living giant, Bunnings. I think this is a high quality tenant to have and feel confident it will be staying put in its warehouses for the long term. Especially given how Bunnings is owned by Wesfarmers, which just happens to own a ~23.6% stake in BWP. At present I estimate that the company's units offer a forward 5.1% yield.
Dicker Data Ltd (ASX: DDR)
Another dividend share to consider buying is Dicker Data. It is a leading distributor of information technology products which has been growing at a strong rate over the last few years. This has been driven by its strong market position, growing demand, and the addition of many new vendors. I believe Dicker Data is well-positioned to continue its growth over the coming years, which should be good news for income investors. In fact, this year the company intends to grow its dividend 31% to 35.5 cents per share. This represents a fully franked 4.8% yield.
Wesfarmers Ltd (ASX: WES)
A final option to consider is Wesfarmers. It is one of Australia's leading conglomerates and the company behind brands such as Bunnings, Kmart, Target, online retailer Catch, and Officeworks. In addition to its retail exposure, the company also owns a number of businesses in the chemicals and industrials industries. Combined, I believe this leaves Wesfarmers well-positioned to grow its earnings and dividends consistently over the coming years. At present I estimate that its shares offer a forward fully franked ~3.9% dividend yield.
