Are you looking for a source of income in this low interest rate environment? Then I think the ASX dividend shares listed below could be the ones to buy.
Both look well-positioned to continue paying their dividends as normal over the coming years despite the pandemic.
Here's why I think they are among the best on offer on the ASX and in the buy zone today:
BWP Trust (ASX: BWP)
BWP is a real estate investment trust (REIT) that invests in and manages commercial assets. These assets are predominantly leased to home improvement giant, Bunnings Warehouse. I think this is a great tenant to have, especially with tax cuts and government stimulus likely to support solid sales growth for Bunnings in the years ahead.
I believe this puts BWP in a position to collect rent as normal in the coming years and grow its income and distribution at a consistent rate for the foreseeable future. Based on the current BWP share price, I estimate that it offers investors a forward 4.4% yield. I think this is very attractive in the current environment.
Rural Funds Group (ASX: RFF)
Another option for investors to consider buying is Rural Funds. It is an agriculture-focused property company which owns a collection of high quality properties across Australia. These properties are leased to some of the biggest players in the industry on long term leases which include rental increases.
In light of this, barring some extraordinary events, I believe Rural Funds is perfectly positioned to continue growing its rental income and distribution at a solid rate over the next decade. In FY 2021, the company plans to increase its distribution by 4% to 11.28 cents per share. Based on the latest Rural Funds share price, this equates to a generous 4.7% yield.
