Although there have been a large number of dividend cuts and deferrals this year because of the coronavirus, there are still plenty of companies sharing their hard-earned profits with shareholders.
Two quality shares which continue to perform well and look set to pay dividends largely as normal over the next 12 months and beyond are listed below.
Here's why I would buy these ASX dividend shares next week:
BHP Group Ltd (ASX: BHP)
The first dividend share to consider buying is BHP. I believe the mining giant is well-positioned to generate strong free cash flows in FY 2021 thanks to its world class and low cost operations and favourable commodity prices. In addition to this, the Big Australian has a number of growth opportunities that I'm confident could generate compelling returns on investment in the coming years. Another positive is the current iron ore price, which is trading comfortably above the US$110 a tonne mark. If it remains in or around this level throughout FY 2021, BHP will be printing money. And given the strength of its balance sheet, this could mean bumper dividends for shareholders. Based on the current BHP share price, I estimate that it will provide a forward fully franked ~4.9% dividend yield in FY 2021.
BWP Trust (ASX: BWP)
Another dividend share to consider buying is BWP Trust. It is a real estate investment trust and the landlord to 68 Bunnings Warehouse stores. Last week BWP released its full year result and revealed a 1% increase in profit (before gains on investment properties) to $117.1 million. But perhaps even more impressive was its result including the gains on investment properties. At a time when most retail property companies are marking down the value of their properties, BWP's have appreciated in value. As a result, including property gains, BWP's profit was up 24.4% to $210.6 million. I believe this demonstrates the quality of its portfolio and its positive outlook even during the toughest of economic times. With its full year result, management provided guidance for an FY 2021 distribution of ~18.29 cents per unit. Based on the current BWP share price, this represents a 4.7% yield.
