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Telstra and 1 more hot ASX dividend share to buy

fingers walking up piles of coins towards bag of cash signifying asx dividend shares
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The Telstra Corporation Ltd (ASX: TLS) share price looks like a solid ASX dividend share to buy.

Shares in the Aussie telco have been smashed this year but I think there’s plenty to like about Telstra in 2020.

Telstra and 1 more ASX dividend share to buy

There are plenty of short-term headwinds for Telstra. The coronavirus pandemic impacted on the group’s full-year result and its outlook for FY21.

There’s also the ever-present headache that is the NBN. Telstra reported underlying earnings before interest, tax, depreciation and amortisation (EBITDA) down 9.7% inclusive of the NBN impact.

However, the good news for Telstra and its shareholders was around dividends.

Net profit after tax fell 14.4% to $1.8 billion and earnings per share slumped 15.5% to 15.3 cents. But the Aussie telco maintained its full-year dividend of 16 cents per share including a fully-franked 8 cents per share final distribution.

I think that’s enough for Telstra to still be considered a top ASX dividend share in 2020. A 19.0% share price drop is not good news but the 3.5% dividend yield is nothing to sneeze at in the current low interest rate environment.

Add to that a promising outlook for its 5G network capabilities and Telstra could be a cheap buy right now.

And Telstra isn’t the only ASX dividend share that I’ve got my eye on right now. ASX gold shares have been surging higher in 2020 and I like the look of St Barbara Ltd (ASX: SBM).

The Aussie gold miner reported a 5.4% increase in total gold production to 381,887 ounces at an all-in sustaining cost of $1,369 per ounce.

That saw net profit fall 24% lower despite EBITDA surging 26.1% higher to $442.9 million.

The Aussie gold miner paid out a full-year dividend of 8 cents per share. That translates to a 2.4% dividend yield which could make St Barbara a solid ASX dividend share for FY21.

Dividend-paying stocks are hard to come by right now given the uncertainty caused by the coronavirus pandemic.

However, gold prices are looking solid for the year ahead which could St Barbara delivers capital gains and income for its investors. 

Foolish takeaway

These are just a couple of the ASX dividend shares that caught my eye in the August reporting season. I think there are plenty of good buying opportunities on the market given the uncertain times ahead.

Man who said buy Kogan shares at $3.63 says buy these 3 ASX stocks now

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In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

*Returns as of 15/2/2021

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. 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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