ASX dividend shares are my favourite shares to own. Don’t get me wrong, I love a good growth share as much as anyone. But that feeling of getting paid just for owning something is pretty hard to beat. And that’s what a quality dividend share does like clockwork. So with this in mind, here are 3 ASX dividend shares I think would make great buys in July.
3 ASX dividend shares to buy this month
1) WAM Leaders Ltd (ASX: WLE)
WAM Leaders is a listed investment company (LIC) run by the reputable Wilson Asset Management. This LIC is a newer addition to the WAM stable, only starting life in May 2016. But since then, it has delivered an average annual return of 9.8% (before fees and taxes). It focuses solely on the top end of the ASX, investing mostly within the ASX 50. Some of its top holdings include Australia and New Zealand Banking Group Limited (ASX: ANZ), Telstra Corporation Ltd (ASX: TLS) and BHP Group Ltd (ASX: BHP).
WAM Leaders recently announced a 3.25 cents per share final dividend, which takes its annualised yield to around 5.73% (or 8.19% grossed-up with full franking).
2) Coles Group Ltd (ASX: COL)
Coles is my second dividend pick for July. This supermarket giant is a highly defensive, recession-resistant business by virtue of the foods, drinks and household essentials it sells. I think these characteristics are especially useful as a dividend investment in the uncertain times we currently all live in.
Looking further ahead, I think Coles’ plans to automate its supply lines and distribution networks is a definite positive for the company and should help it deliver plenty of earnings growth down the road. Right now, Coles is offering a trailing dividend yield of 2.38%, which grosses-up to 3.4% with full franking. This yield isn’t going to set the world on fire, but it could well be a lot better than what Westpac Banking Corp (ASX: WBC) and ANZ are offering this year.
3) SPDR S&P Global Dividend Fund (ASX: WDIV)
This exchange-traded fund (ETF) isn’t one company, but instead holds a basket of dividend-paying shares that hail from all over the world. Having some dividends coming in from outside the ASX is important from a diversification perspective, in my view. And WDIV is a great candidate for providing this international exposure. It only holds companies that have either held steady or increased their dividend payouts over the past 10 years.
It’s fairly evenly spread between American, Canadian, Japanese, Hong Kong, British and European companies with even some ASX shares like AGL Energy Limited (ASX: AGL) thrown in. Some other top holdings include Enagas, IG Group, Northland Power and Japan Tobacco.
Today, WDIV is offering a trailing dividend yield of 5.49% (which unfortunately doesn’t come with much in the way of franking credits).
Where to invest $1,000 right now
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Motley Fool contributor Sebastian Bowen owns shares of SPDR S&P Global Dividend Fund and Telstra Limited. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of COLESGROUP DEF SET. 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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