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2 top ASX dividend shares you can buy right now

If you’re looking for a source of passive income, then the dividend shares listed below could be good options for you.

Here’s why I think these two ASX dividend shares are great options right now:

Vanguard Australian Shares High Yield ETF (ASX: VHY)

The first option I would recommend investors look at is actually an exchange traded fund which gives you exposure to a diverse group of dividend shares. The Vanguard Australian Shares High Yield ETF provides investors with low-cost exposure to companies that have higher forecast dividends relative to other ASX-listed companies. It achieves diversification by restricting the proportion invested in any one industry to 40% of the total ETF and 10% for any one company.

Vanguard believes that this investment approach provides investors with an efficient way to capture long-term market performance, as well as a source of income along the way. Among its holdings you’ll find the big four banks, miners, telco giant Telstra Corporation Ltd (ASX: TLS), and the conglomerate listed below. I estimate that its units provides a forward dividend yield of at least 5% at present.

Wesfarmers Ltd (ASX: WES)

Another dividend share to consider buying is Wesfarmers. I think the conglomerate is a great option for investors due to the quality and diversity of its portfolio and management’s long track record of making earnings accretive acquisitions. The latter could come into play in the near future given the sizeable cash balance the company is sitting on. This follows the recent sell down of its stake in supermarket giant Coles Group Ltd (ASX: COL).

Overall, I’m confident that Wesfarmers is well-positioned to deliver solid earnings and dividend growth over the next decade. For now, I estimate that its shares offer investors a decent forward fully franked ~3.6% dividend yield.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

*Returns as of June 30th

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of Wesfarmers 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.

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