Along with our Top ASX Stock Picks for June, we also asked our Foolish writers to pick their favourite ASX dividend shares to buy this month.
Here is what the team have come up with…
Sebastian Bowen: Coles Group Ltd (ASX: COL)
Coles is a company we'd all be familiar with. I think 2020 has shown the worth of having a consumer staples giant like Coles in a dividend portfolio. Whilst this company might not have the largest dividend on the market, it is (in my view) one of the most reliable.
Coles also has a very dividend-friendly policy of paying out 80–90% of earnings each year in dividends, which typically come fully franked as well. As such, I would happily add Coles to a diversified ASX dividend portfolio this June and be comfortable in the knowledge this is a stock you can conceivably hold forever.
Motley Fool contributor Sebastian Bowen does not own shares of Coles Group Ltd.
Michael Tonon: Rural Funds Group (ASX: RFF)
Rural Funds now has a 5-year-strong track record of increasing its dividend payments to shareholders. This means it didn't stumble like many companies recently when it came to paying out its quarterly dividend.
Rural Funds' strong dividend growth comes from its long weighted average lease expiry of 11.5 years and the structural rental growth built into these leases. This provides it with a significant amount of reliability when it comes to increasing and predicting future dividends. For these reasons, if you're looking for a steady yield, I believe it's a no brainer.
At the time of writing, Rural Funds currently trades with a FY21 distribution yield of 5.5%.
Motley Fool contributor Michael Tonon owns shares of Rural Funds Group.
Brendon Lau: Commonwealth Bank of Australia (ASX: CBA)
I suspect CBA's final dividend (to be declared in August) won't be cut as much as the market believes. This is because the economy is slowly but surely recovering from the COVID-19 fallout. Pressure on banks to cut or suspend their dividends to shore up capital buffers is easing and that should give our largest bank greater flexibility in paying its dividend.
Motley Fool contributor Brendon Lau owns shares of Commonwealth Bank of Australia.
Daryl Mather: Vicinity Centres (ASX: VCX)
In my opinion, Warren Buffett's saying "be greedy when others are fearful" applies to Vicinity Centres. The company recently undertook a placement to strengthen its balance sheet. It also cancelled its most recent distribution and flagged revenue difficulties due to the pandemic.
So why invest? At its current share price, the company has a 12-month trailing average distribution of 9.6%. Its share price is down by around 35%, year to date. Yet, it is still the same great company it always was.
I think investing in Vicinity today provides an exceptionally low entry price to a great REIT and locks in future high dividend yields.
Motley Fool contributor Daryl Mather does not own shares in Vicinity Centres.
Tristan Harrison: Brickworks Limited (ASX: BKW)
I think Brickworks is one of Australia's most reliable ASX dividend shares. It hasn't decreased its dividend for over 40 years.
It has three attractive divisions. The first is a large long-term holding of Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) shares, which delivers a growing stream of dividends. The second is an attractive industrial property trust which is steadily growing net rental profit for Brickworks. The third is its building products businesses in Australia and the US. It's a strong combination of assets.
At the time of writing, Brickworks shares have a grossed-up yield of 5.1%.
Motley Fool contributor Tristan Harrison does not own shares of Brickworks Limited.
Toby Thomas: Harvey Norman Holdings Limited (ASX: HVN)
In my mind, it's tough to go past this retail juggernaut in June. Having announced earlier this week that franchise sales had rocketed by as much as 17% in the second half of FY2020, the company further revealed that a 'special dividend' of 6 cents per share would be paid to shareholders later this month. This sees the annual dividend yield for Harvey Norman total 8.6% on a fully-franked basis.
Its strong sales performance has undoubtedly come off the back of government stimulus and stronger consumer spending on electronics and home appliances during COVID-19 lockdowns. As people look to go out less and invest in home improvements instead, I think a strong investment case can be made for owning shares in Harvey Norman.
Motley Fool contributor Toby Thomas does not own shares of Harvey Norman Holdings Ltd.
Phil Harpur: Dicker Data Ltd (ASX: DDR)
Dicker Data is a wholesale distributor of computer hardware, software, as well as cloud-based solutions. It is also the largest Australian-owned hardware distributor in Australia and New Zealand. Dicker Data has evolved over the past 40 years from a small family run business to a company with an impressive market capitalisation of around $1.35 billion today.
Dicker Data has also seen a recent uplift in sales. It recorded its strongest ever revenue month to date in March. Sales have continued to be strong despite the coronavirus crisis.
Dicker Data currently pays a forward fully franked dividend yield of around 3.8% at the time of writing.
Motley Fool contributor Phil Harpur does not own shares of Dicker Data Ltd.
Chris Chitty: BHP Group Ltd (ASX: BHP)
My dividend stock for June is Australia's largest and most famous resources producer. BHP has fared relatively favourably recently due to interruptions to competitor Vale in Brazil. It is also leveraged to an economic recovery, following the unprecedented stimulus that has been added to the world economy in recent months.
At the time of writing, BHP trades on a generous trailing dividend yield of 5.87%, fully franked. It has continued its dividend in the recent climate and, with its high quality assets, BHP looks set to continue its long-term growth.
Motley Fool contributor Chris Chitty does not own shares in BHP Group Ltd.
Lloyd Prout: Cochlear Limited (ASX: COH)
Cochlear is a medical device company that is a leader in the design, manufacture and supply of implantable hearing devices.
The Cochlear share price is down around 25% from its February highs. COVID-19 caused sales revenue to temporarily fall ~60% in the month of April compared to the prior corresponding period. On top of this, the recent ruling in its long-running patent infringement case will see Cochlear pay approximately US$280 million in damages.
These are temporary impacts that, in my view, present a great entry point for a high quality, long term dividend payer. At the time of writing, Cochlear shares currently yield 1.72% or 2.45% grossed up.
Motley Fool contributor Lloyd Prout does not own shares in Cochlear Limited and expresses his own opinion.
Matthew Donald: Woolworths Group Ltd (ASX: WOW)
Woolworths is Australia's largest supermarket chain, carving out a 32.9% market share according to the Fresh Food and Grocery Report.
Regardless of the economic climate, people need to buy groceries, which means Woolworths shares boast defensive characteristics. Defensive companies with stable cash flow can provide dividends even in the bleakest economic conditions.
After the initial surge in demand for groceries at the height of the pandemic and the threat of a second wave, Woolworths could act as a fort for investors as markets reassess risk.
Disclosure: Motley Fool contributor Matthew Donald does not own shares in Woolworths Group Ltd.
Ken Hall: Harvey Norman Holdings Limited (ASX: HVN)
Harvey Norman is my top ASX dividend share for June after a strong start to the month.
The Aussie retailer recently announced booming sales during the early stages of coronavirus restrictions. Strong sales meant the ASX retail share announced a 6 cents per share special dividend last week. That's despite the company having previously cancelled its 12 cents per share interim dividend in April.
With more Aussies working from home in 2020, Harvey Norman could be well-placed for a surprisingly good year. The Harvey Norman share price is still trading lower in 2020 and could be a bargain buy right now.
Motley Fool contributor Ken Hall does not own shares in Harvey Norman Holdings Ltd.
Nikhil Gangaram: Medibank Private Ltd (ASX:MPL)
In my opinion, Medibank would be a great share to park your money in, given the current uncertain trading environment. The company boasts a great net cash balance and offers a dividend yield of around 4–5% after franking.
With people becoming more conscious of their overall health, many might look to spend money on private health insurers like Medibank for peace of mind. In addition, with the federal government's budget coming under pressure post-pandemic, private healthcare might become more popular as public health systems become constrained.
Motley Fool contributor Nikhil Gangaram does not own shares in Medibank Private Limited.
