The S&P/ASX 200 Index (ASX: XJO) and All Ordinaries (ASX: XAO) remain in a vulnerable (and volatile) state and may present more buying opportunities in the future.
For investors seeking high quality ASX 200 dividend shares with consistent cash flows amid the COVID-19 crisis, here are 3 blue-chip shares to add to your watchlist.
BHP Group Ltd (ASX: BHP)
The iron ore spot price has soared to an 11-month high following strong Chinese steel demand and optimism over Chinese economic growth recovery. This spells good news for iron ore miners BHP, Rio Tinto Limited (ASX: RIO) and Fortescue Mining Limited (ASX: FMG), all of which are among the best ASX 200 dividend shares, in my view.
I would prefer BHP as the dividend play, given its diversified minerals portfolio compared to a pure iron ore play such as Fortescue. At the time of writing, BHP pays a fully franked dividend yield of 5.76%. The current elevated iron ore prices should see iron ore miners continue to be leading ASX 200 dividend shares for yield-hungry investors.
WAM Capital Limited (ASX: WAM)
On 8 July, WAM Capital announced a fully franked final dividend of 7.75 cents per share, bringing its FY20 fully franked full year dividend to 15.5 cents per share. This would equate to a dividend yield of approximately 8.1% at today's share price.
Its market leading dividend payout follows its investment portfolio outperforming the ASX 200 by 4.4% during the 12-month period to 30 June 2020. WAM Capital's top holdings as at 30 June 2020 include retailers such as Adairs Ltd (ASX: ADH), Bapcor Ltd (ASX: BAP) and BWX Ltd (ASX: BWX) and a mix of others in agriculture, healthcare and information technology.
WAM hasn't cut its dividend for more than a decade and remains one of the most consistent and reliable ASX 200 dividend shares.
JB Hi-Fi Limited (ASX: JBH)
Retailers are emerging as strong ASX 200 dividend shares, given an increase in retail spending and time spent at home. As a result, JB Hi-Fi reported strong sales growth in the second half of FY20 in JB Hi-Fi Australia and The Good Guys with comparable sales increasing by 20% and 23.5%, respectively, on the prior corresponding period (pcp).
At this point in time, the group expects total net profit after tax to be in the range of $300 million to $305 million, an increase of 20% to 22% on the pcp. It currently pays a dividend yield of approximately 3.80%. Other retailers such as Adairs and Shaver Shop Group Ltd (ASX: SSG) may pay higher dividends, but I prefer JB Hi-Fi for its position as a market leader in the electronics space, and its consistent earnings.
