With Westpac Banking Corp (ASX: WBC) tipping the Reserve Bank to cut the cash rate to 0.1%, it could be about to get even harder for income investors.
The good news is that the share market is here to save the day with a number of top dividend shares offering superior yields.
Two which I think would be top options for investors today are listed below. Here’s why I would buy them:
The first ASX dividend share to look at buying is Aventus. It is a retail property company which specialises in large format retail parks. Despite the retail property sector struggling during the pandemic, Aventus’ high weighting to every day needs has allowed it to navigate these tough trading conditions and continue its growth.
Last month the company released its full year results and revealed a 4.2% increase in funds from operations (FFO) to $100 million. This allowed the Aventus board to declare an 11.9 cents per security distribution for the year. Based on the current Aventus share price, this equates to a generous 5% yield.
Rural Funds Group (ASX: RFF)
A second ASX dividend share to buy is this agriculture-focused property group. Rural Funds is the owner of 61 properties across five agricultural sectors. I’m a big fan of the company due to its long leases and blue chip customer base. At the end of the last financial year, the company’s weighted average lease expiry (WALE) stood at a lengthy 10.9 years and approximately 78% of its revenue was coming from corporate or listed tenants such as wine giant Treasury Wine Estates Ltd (ASX: TWE).
Rural Funds was also on form during the pandemic and reported an 8% increase in property revenue to $72 million in FY 2020. Looking ahead, management reaffirmed its plan to grow its distribution by 4% in FY 2021 and intends to pay shareholders 11.28 cents per share. Based on the current Rural Funds share price, this works out to be a 4.8% yield.
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Returns As of 6th October 2020
Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED and Treasury Wine Estates Limited. 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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