Whether you're retired or still working, shares that produce dividend yields are a great way to generate a regular income stream.
Here we look at 3 ASX dividend shares to potentially buy this month: Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), Carsales.Com Ltd (ASX: CAR) and Bapcor Ltd (ASX: BAP). All 3 are high quality ASX 200 companies that pay strong and regular fully franked dividends.
Soul Patts
Soul Patts is an investment conglomerate that invests in a wide range of industries, from pharmacies and telecommunications to building products and mining. It has a solid long-term track record of outperforming the ASX index. The company is also a strong and consistent dividend-paying share. It currently pays a fully franked forward dividend yield of 3.01%.
Soul Patts has been listed on the ASX for over a century, and it has managed to pay a dividend every year in that time, and has increased that dividend every year since 2000.
The Soul Patts share price is currently well below pre-COVID-19 levels, making it a good buying opportunity right now, in my mind.
Carsales
Carsales has been the undisputed king of the local online automotive classifieds market in Australia for over 1o years. During that time, its share price has risen from $4.89 to now be trading at $18.78 at the time of writing. That's an increase of over 280%. On top of that, Carsales pays a very attractive fully franked dividend. The company's forward dividend yield is currently 2.46%.
I believe that Carsales is well positioned for more strong growth over the next decade. This growth will be driven in particular from its expanding overseas operations, which includes South Korea and Brazil. Growth will also come from a strong entrenched local position, driven by a growing local population.
Bapcor
Bapcor has evolved to become the leading second-hand auto parts distributor in Australia and New Zealand. Beyond these markets, expansion into the Thailand will hopefully provide Bapcor with a launching pad to make inroads into the wider Asian market.
Bapcor recently revealed that the impact of the pandemic has been less severe than it had originally predicted. In particular, Bapcor's retail and Burson Trade businesses in Australia have experienced strong recent demand.
The Bapcor share price is still down from the level it was at before the pandemic began. This in my mind, offers investors a reasonably good buying opportunity right now. Bapcor currently offers a fully franked forward dividend yield of 2.85%.
Foolish Takeaway
Soul Patts, Carsales are Bapcor are 3 high quality ASX dividend shares that all pay a handy fully franked dividend. All 3 companies have strong market positions in their respective industries, and all are in my buy zone right now.
