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Why I would buy ANZ and this ASX share for dividends

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.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

*Returns as of June 30th

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.

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