You might be eyeing the current market as an opportunity to buy some cheap ASX dividend shares.
The S&P/ASX 200 Index (ASX: XJO) is down 10.5% since the start of the year, which could mean there are some bargain buys.
However, I think it's easier said than done to find undervalued shares. There are a lot of smart investors out there hunting for bargains.
Here are a few of the ASX dividend shares that I would consider investing in today.
Why Telstra is on my ASX dividend share watchlist
I think Telstra Corporation Ltd (ASX: TLS) shares are worth a look right now.
Telstra has been an ASX dividend share staple for a number of years now, although it's true that there have been some steep share price declines and dividend cuts to Telstra shares in recent years.
That means the Aussie telco may not be the reliable income share it has been in the past, but I still think there could be some long-term value. Telstra is currently yielding 3.1%, which would be a handy portfolio boost in the current times.
Of course, dividend yields could be misleading right now, but I think Telstra's future dividend payment prospects remain bright, particularly given its emerging position as a potential leader in the 5G network space. That could be the key to the Aussie telco gaining back market share (and earnings) it has lost to the NBN.
Are ASX bank shares worth a look?
Out of the ASX banks, I think Macquarie Group Ltd (ASX: MQG) could be a solid ASX dividend share to buy.
The Macquarie share price is down 11.8% this year and in my opinion could be an undervalued prospect, given its 3.5% dividend yield. Recent ASX bank dividend cuts don't bode well for strong income in 2020, but there's a chance Macquarie could maintain its distributions.
If Macquarie's investment teams can capitalise on the current market volatility, that could pave the way for a strong half-year earnings result. Higher earnings often means more free cash flow, which is good news for investors holding out hope for half-year dividend payment.
Can this ASX dividend share outperform in 2020?
JB Hi-Fi Limited (ASX: JBH) is one ASX dividend share, in particular, that I think could outperform in the next 12 months.
The JB Hi-Fi share price is up 10% in 2020 but it could be set to climb higher if it continues its strong sales trajectory.
More Aussies working from home has been a big factor behind the recent share price move.
JB Hi-Fi's electronics sales have skyrocketed in recent months but I think there's more potential growth on the way. If we see a sustained shift towards a more remote working model, that could see more Aussies upgrade their home setups.
It's certainly not a long-term trend, but any short-term sales boost is welcome in the current market. More sales means higher earnings and that could mean JB Hi-Fi maintains its distributions, while other top companies are forced to make cuts.
That would be good news for JB Hi-Fi and its investors, who could pick up a 3.6% dividend yield today.
Foolish takeaway
These are just a few of the ASX dividend shares that I think could be good value buys for income alongside some potential capital gains.
