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My 3 best ASX dividend shares to buy right now

ASX dividend shares are a great way to boost your income.

Cash is still a good way to protect your capital value. But what if you’re trying to make an income? It hardly earns anything any more. But dividends can be the answer. Businesses are still earning profits and paying out dividends. Even during this coronavirus period. 

Here are the three best ASX dividend shares I’d buy right now:

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Soul Patts could be the best ASX dividend share when it comes to reliability. It has increased its dividend every year since 2000. It has also paid a dividend every year since it listed in 1903, including through all of the wars and recessions.

The way Soul Patts is able to do this is because it’s an investment conglomerate that’s invested in a variety of different businesses and industries such as TPG Telecom Ltd (ASX: TPM) and soon it’ll be invested in regional data centres.

Each year Soul Patts pays out the majority of its investment income that it receives, less the expenses it pays for.

It’s the type of business that you can invest in and hold for many years to come. What’s the yield for the ASX dividend share? It has a grossed-up dividend yield of 4.7%.

Brickworks Limited (ASX: BKW)

Brickworks is another great option in my opinion. This ASX dividend share hasn’t decreased its dividend for more than four decades. It owns a range of building products businesses which are among the biggest in Australia, particularly the brickmaking divisions.

The recent expansion into the US through acquisitions should be a smart move if Brickworks can become more efficient there over time.

What’s particularly attractive at the moment is that Brickworks’ share price has fallen so hard, but it’s actually invested in an industrial property trust along with Goodman Group (ASX: GMG) which generates good reliable cashflow. It also owns a large stake of Soul Patts shares. Soul Patts also owns a large chunk of Brickworks.

The non-construction businesses alone are creating enough cashflow for Brickworks to keep paying the dividend. It currently has a grossed-up dividend yield of 6%. I think that’s solid

WAM Research Limited (ASX: WLE)

WAM Research is one of the best listed investment companies (LICs) for income. It has grown its dividend every year since the GFC.

The ASX dividend share has a grossed-up dividend yield of 10.4%. It manages to fund such a large dividend by generating strong investment returns by targeting small and medium shares where there’s a catalyst to boost the share price.

Dividends have to be funded by the profit reserve, but it’s currently healthy for the LIC.

Foolish takeaway

Each of these ASX dividend shares have attractive income prospects and could be much better ideas for income compared to the overall ASX. But Soul Patts would be my preferred pick for long-term income.

There are some other top ASX income shares out there that would be great dividend picks.

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Motley Fool contributor Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended Brickworks and Washington H. Soul Pattinson and Company 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.