Along with our Top ASX Stock Picks for September 2020 and our Top ASX growth shares to buy in September 2020, we also asked our Foolish writers to pick their favourite ASX dividend shares to buy this month.
Here is what the team have come up with…
Aaron Teboneras: Dicker Data Ltd (ASX: DDR)
Dicker Data has been a great option for investors seeking frequent and reliable dividends. In its interim results released last month, Dicker Data achieved a record revenue of more than $1 billion and rewarded shareholders with a fully franked dividend of 7.5 cents. Total dividends for the past 12 months have tallied 38 cents, representing a dividend yield of 5.1%. paid in quarterly instalments.
Dicker Data has increased its focus on small-to-medium business enterprises and is currently building a new distribution centre to meet its increasing demands. I think the company is well-positioned for the future and will continue to pay growing dividends.
Motley Fool contributor Aaron Teboneras owns shares in Dicker Data Ltd.
Daniel Ewing: Telstra Corporation Ltd (ASX: TLS)
The Telstra share price has been sinking lower recently and is showing no signs of slowing down. The company has been on a slide since its disappointing FY20 results.
However I'm confident the long-term outlook for Telstra is positive. I believe the telco giant's T22 plan is bound to start reaping rewards as it seeks to strip out costs and simplify the Telstra business. As such, I think the trailing dividend yield of 5.61% on offer is a bargain which investors should take advantage of.
Motley Fool contributor Daniel Ewing owns shares in Telstra Corporation Ltd.
Sebastian Bowen: JB Hi-Fi Limited (ASX: JBH)
JB Hi-Fi is not a company that normally comes to mind for dividend investors. Yet it has a strong record of growing its shareholder payouts and offers a solid starting yield today. Its latest final dividend came in at 90 cents per share, which was paid out on Friday and represented a 76% increase on FY19's final dividend of 51 cents per share. Not a bad performance for the year of the pandemic. That gives JB shares a trailing yield of 4% on recent pricing, which also comes fully franked. I don't think any ASX share in the retail space can match this recent dividend record, and this makes JB a perfect income share for September in my eyes.
Motley Fool contributor Sebastian Bowen does not own shares in JB Hi-Fi Limited.
Lloyd Prout: Macquarie Group Ltd (ASX: MQG)
Macquarie is the only bank that I would buy on the ASX. Why? Because the term 'millionaire maker' doesn't just apply to the bank's rich clients, but also to its investors. Over the past decade, Macquarie has provided total annualised returns of over 16% per annum. Despite this, investors have a nice entry point with shares trading around 20% off their February highs at the time of writing.
Macquarie has more international exposure than the other big banks, as well as an investment banking arm which provides greater optionality than its competitors. It currently pays a partially franked 3.4% dividend yield.
Motley Fool contributor Lloyd Prout owns shares in Macquarie Group Ltd and expresses his own opinion.
Tristan Harrison: Vitalharvest Freehold Trust (ASX: VTH)
Vitalharvest is an agricultural real estate investment trust (REIT) which owns berry and citrus farms.
Looking at the distribution, it offers a yield of 6.2%. But I think this could grow for two reasons. It has a profit-share agreement with its tenants for the farms that are rented. Those farms have suffered negative impacts from the drought but those conditions could materially improve in FY21.
It's also under new management that will focus on more consistent properties like food processing and logistics. The Vitalharvest share price of 78 cents (at the time of writing) is a 14% discount to the FY20 net asset value of 91 cents.
Motley Fool contributor Tristan Harrison does not own shares in Vitalharvest Freehold Trust.
Daryl Mather: Base Resources Limited (ASX: BSE)
Base Resources is a mineral sands miner with operations in Kenya and a project in Madagascar. Its net profit after taxes for FY20 was $39.6 million, a slight reduction on FY19 due to reduced ore grade. Nevertheless, it intends to increase production by 50.2% in FY21.
The company pays its maiden dividend this year of 3.5 cents. Based on Monday's price of 30 cents, this payment will yield 11.7%. The Base Resources share price goes ex-dividend on Friday 18 September, paying out on 7 October.
I think this is a good, cheap prospect for short-term dividend yield and medium-term share price growth.
Motley Fool contributor Daryl Mather does not own shares in Base Resources Limited.
Glenn Leese: Bendigo and Adelaide Bank Ltd (ASX: BEN)
Bendigo and Adelaide Bank is sometimes overlooked when compared to the big four banks, however its operation is anything but insignificant. Founded in 1858 (yes, it's over 160 years old) and operating over 500 branches across multiple brands, its network is large. Bendigo and Adelaide Bank offers all the services of a big bank, competing across multiple product suites.
Ideally, you want stability and growth in a dividend share. After all, dividends mean cash flow. Bendigo and Adelaide Bank has more than doubled its dividend yield in the last decade, from 4.7% in 2010 to 9.7% in 2020. Importantly, during the pandemic, it has kept dividends flowing and increasing.
In my view, this bank would make an excellent addition to any dividend portfolio.
Motley Fool Contributor Glenn Leese does not own shares in Bendigo and Adelaide Bank Ltd.
Bernd Struben: Stockland Corporation Ltd (ASX: SGP)
When you're hunting for dividends, you should never ignore a company's long-term share price outlook. Which brings me to Stockland, a property development company operating in retail, industrial and residential properties, including retirement villages.
Stockland has yet to recover from its 67% share price crash during the COVID-19 panic selling. But it did gain 53% from 4 January 2019 through to 21 February this year. This is a trend I believe it can repeat post COVID.
Stockland paid two dividends this year, 13.5 cents on 28 February and 10.6 cents on 31 August for an annual dividend yield of 6.5%, unfranked.
Motley Fool contributor Bernd Struben does not own shares in Stockland Corporation Ltd.
James Mickleboro: Bravura Solutions Ltd (ASX: BVS)
I think that Bravura Solutions would be a great option for income investors in September. I wouldn't normally class the provider of software products and services to the wealth management and funds administration industries as a dividend share, but a sizeable pullback in its share price has made it one.
Based on the current Bravura share price, I estimate that it offers investors a forward 3.3% dividend yield. Pleasingly, given the quality of its software products and their massive global market opportunity, I believe it is well-placed to grow this dividend at a very strong rate over the next decade.
Motley Fool contributor James Mickleboro does not own shares in Bravura Solutions Ltd.
Chris Chitty: Harvey Norman Holdings Limited (ASX: HVN)
Harvey Norman has seen significant success lately as people have rushed to buy up furniture and home appliances during coronavirus restrictions. It now trades on a trailing fully franked dividend yield of 7.7% at the time of writing. Additionally, Harvey Norman goes ex dividend on 9 October 2020 so it's not too late for investors to receive the final dividend.
While there has been a definite move toward online retail during the pandemic, Harvey Norman's brick and mortar stores have performed relatively well and it is currently opening new stores in Australia and abroad. The company now has no net debt and is in great shape to extend its track record as a great dividend share.
Motley Fool contributor Chris Chitty does not own shares in Harvey Norman Holdings Limited.
Brendon Lau: Telstra Corporation Ltd (ASX: TLS)
The unloved telco slumped to around a near two-year low after delivering a disappointing outlook with its uninspiring FY20 profit result. But with the Telstra share price this low, the dividend yield is looking interesting even if you assumed a dividend cut.
While analysts seem divided on whether Telstra's 16 cent per share annual dividend is sustainable, I think it's more likely than not that management will lower the dividend by 2 cents per share. Even then, the share is still yielding close to 7% if you include franking (based on the share price of $2.86 at the time of writing). That's a good yield. Just ask any big bank investor.
Motley Fool contributor Brendon Lau owns shares in Telstra Corporation Ltd.