The S&P/ASX 200 Index (INDEXASX: XJO) and All Ordinaries (ASX: XAO) are caught between a post-COVID-19 recovery and a second wave of infections. Amidst a time where dividends may waver, I believe the below are 3 safe and reliable ASX 200 dividend shares.
1. WAM Capital Limited (ASX: WAM)
WAM Capital is a listed investment company (LIC) which provides investors exposure to an actively-managed diversified portfolio of undervalued ASX growth companies.
WAM’s portfolio objectives are to deliver a steady stream of fully franked dividends, provide capital growth and preserve capital. WAM has had over a decade of growing dividends and cash flows through market-leading investments.
In the company’s May update, it noted the Australian equity market rallied strongly at the reopening of the domestic economy. Significant contributors to its portfolio outperformance included automotive company Bapcor Ltd (ASX: BAP), retail travel agency Webjet Limited (ASX: WEB) and agricultural companies.
I believe WAM’s consistent performance and keen eye for investment opportunities make it a great ASX 200 dividend share.
It currently pays a dividend yield of 8.40%.
2. BHP Group Ltd (ASX: BHP)
The iron ore spot price has cracked US$100 per tonne. This comes as the world’s largest iron ore producer, Vale SA, experiences production challenges due to a coronavirus site outbreak.
BHP’s also mines petroleum, copper, metallurgical coal and nickel have also rebounded strongly following March lows. BHP’s portfolio rebound and continued strength of the iron ore spot price should see Aussie miners produce market-leading dividends.
BHP currently pays a dividend yield of 5.96%.
3. Money3 Corporation Limited (ASX: MNY)
In a recent Carsales.Com Ltd (ASX: CAR) update, research showed an increase in first-time buyers and people adding another car to their household. This is likely due to consumers looking to avoid public transport.
This narrative bodes well with the Money3 business model that provides automotive finance for the purchase and maintenance of vehicles. The company provides approximately loans to 1 in every 500 vehicles in Australia and 1 in every 800 vehicles in New Zealand.
I believe the business is in a good financial position with $43m in cash and ready to leverage new organic growth when demand returns.
Money3 currently pays a dividend yield of 6.39%.
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Motley Fool contributor Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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