With interest rates at their lowest levels in history and unlikely to move higher for some time, I believe dividend shares remain the best place to earn an income.
But which ASX dividend shares should you buy? I think these would be top options right now:
Aventus Group (ASX: AVN)
Aventus is a retail property company which specialises in large format retail parks. It currently has a total of 20 centres which are home to a diverse tenant base of 593 quality tenancies. This includes major retailers such as ALDI, Bunnings, Officeworks, and The Good Guys. I like Aventus due to the way its portfolio is weighted heavily towards everyday needs. I believe this means it is better positioned than many property companies to ride out the pandemic. 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 8.2% distribution yield
Coles Group Ltd (ASX: COL)
Another option to consider buying is Coles. I think the supermarket giant is well-positioned to grow its earnings and dividend at a solid rate over the next decade. This is due to its defensive qualities, positive sales growth outlook, and potential margin expansion from its refreshed strategy. Based on the latest Coles share price, I estimate that it provides investors with a fully franked ~3.4% FY 2021 dividend yield.
Lendlease Group (ASX: LLC)
A final dividend share to consider buying is Lendlease. It hasn’t been a great 12 months for the international property and infrastructure company. However, I’m feeling confident that the worst is behind it. In light of this and its burgeoning global development pipeline, I believe now could be an opportune time to invest. Especially for income investors. I estimate that it will pay a 57 cents per share dividend next year. Based on the current Lendlease share price, this equates to a 5.1% dividend yield.
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 owns shares of COLESGROUP DEF SET. 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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