If you're looking to add a few new dividend shares to your portfolio, then the two listed below could be top options this month.
Both these ASX shares offer generous yields and look well-placed to continue paying dividends in 2020 despite the crisis. Here's why I think they are in the buy zone right now:
Aventus Group (ASX: AVN)
Aventus is a retail property company which owns a total of 20 large format retail parks across Australia. While retail property is going through a difficult time right now because of the pandemic, Aventus looks better positioned that most. This is because its rental income has a high weighting towards everyday needs, which have been largely unaffected by the crisis.
Goldman Sachs is very positive on the company and has forecast a ~17.3 cents per unit distribution in FY 2021. Based on the current Aventus share price, this equates to a very generous forward ~8.1% distribution yield. Overall, I think this could make Aventus a dividend share to buy right now.
Telstra Corporation Ltd (ASX: TLS)
Another dividend share to consider buying is Telstra. After years of declining earnings and dividend cuts, I'm confident the tide is now turning for this telco giant. This is due to a combination of the NBN headwind easing, rational competition returning, and the material cost cutting from its T22 strategy.
All in all, I believe this has put Telstra in a position to generate sufficient free cash flow in the coming years to maintain its 16 cents per share fully franked dividend. After which, I'm optimistic that it won't be long until the company returns to growth at long last. For now, based on the latest Telstra share price, it offers investors an attractive fully franked 4.6% dividend yield.
