Why I would buy ANZ and this ASX share for dividends

Here's why I would be buying Australia and New Zealand Banking GrpLtd (ASX:ANZ) and this ASX share for their dividends…

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

If you're looking for some generous dividends in 2021, then I think you ought to consider buying the two ASX dividend shares listed below.

Here's why I think they would be good options for income investors:

Australia and New Zealand Banking GrpLtd (ASX: ANZ)

The first ASX dividend share to consider buying is ANZ Bank. The banking giant's shares have been hammered this year because of the pandemic and are down materially from their 52-week high. And while this share price decline is not completely unjustified due to the probable increase in bad debts, I believe the selling has been overdone and created a buying opportunity.

Especially given the generous dividend yield on offer with the bank's shares. According to a note out of Goldman Sachs, its analysts expect ANZ to pay a partially franked 116 cents per share dividend in FY 2021. Based on the latest ANZ share price, this represents a very attractive 6.3% FY 2021 yield.

Aventus Group (ASX: AVN)

Another dividend share to consider buying is Aventus. It is a retail property company which owns a portfolio of 20 large format retail parks across Australia. Although retail property is going through a difficult time right now because of the pandemic, I believe Aventus is better positioned that most to ride out the storm. 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 sizeable ~17.3 cents per unit distribution in FY 2021. Based on the current Aventus share price, this equates to a very generous forward ~8.25% distribution yield. Overall, I think this could make Aventus one of the better dividend shares to buy right now.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended AVENTUS RE UNIT. 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.

More on ⏸️ Dividend Shares

A boy hold money and dressed in business suit next to money bags on a desk, indicating a dividends windfall
⏸️ Dividend Shares

The Accent (ASX:AX1) dividend has lifted by 22%

The company will reward shareholders with an increased dividend...

Read more »

a woman sits in the driver's seat of a car with her arm resting on the door with a small smile on her face, looking out of the car.
⏸️ Dividend Shares

Carsales (ASX:CAR) share price records a modest rise on dividend slash

Australia's largest online automotive and marine classifieds business notches a conservative share price rise on its latest report.

Read more »

A young entrepreneur boy catching money at his desk, indicating growth in the ASX share price or dividends
Bank Shares

ASX 200 bank shares to follow suit after CBA dividend hike: expert

Dividend investors rejoice! This expert expects more dividends to come from ASX 200 bank shares...

Read more »

sad looking petroleum worker standing next to oil drill
Share Fallers

AGL (ASX:AGL) dividend slashed. Share price down 3% on Thursday

More headwinds for the energy giant as its dividend is now in the spotlight.

Read more »

A girl looks through a microscope at money.
⏸️ Dividend Shares

The ANZ (ASX:ANZ) share price has only gained 10% in 5 years. But have the dividends paid off?

We do the math to see if it has been worth investing in ANZ shares over the long term...

Read more »

man laying on his couch with bundles of money and extremely ecstatic about high dividend returns
⏸️ Dividend Shares

The NAB (ASX:NAB) share price is flat 5 years on. But have the dividends paid off?

We calculate if it has been worth investing in NAB shares over the long run...

Read more »

two children dressed in business attire with joyous, wide-mouthed expressions count money at a desk covered in cash and sacks of money either side.
⏸️ Dividend Shares

Top-10 ASX dividend share delivers market-thumping share price gains

The Holy Grail for income stocks is to return strong capital gains as well

Read more »

happy woman looking at her laptop with notes of money coming out representing financial success and a rising share price and dividend yield
⏸️ Dividend Shares

Mining shares in the ASX 200 might unearth US$26b worth of dividends

Are shareholders about to dig some dividends?

Read more »