Owning ASX dividend shares that pay you a cash yield can be a wonderful experience. But in today's near-zero interest rate environment, it has become even more important to aim for yield in one's ASX share portfolio (if income is part of your investing objectives anyway).
Many investors are struggling with the realities of TINA these days – which stands for 'There Is No Alternative'. Since interest rates are just 0.1% as of this month, investors looking for any kind of yield on capital pretty much have to turn to the share market (despite the risks). That's because cash and bonds no longer provide any real returns at a cash rate of 0.1%.
So here are 2 ASX dividend shares that Motley Fool analysts rank as 'buys' today
2 ASX dividend shares to buy today for income
Transurban Group (ASX: TCL)
Transurban Group is Australia's largest toll-road operator. If you've driven on a toll road in Sydney, Melbourne or Brisbane recently, chances are you paid Transurban for the privilege. The company owns most of Sydney's tolled motorways. That includes a stake in the mammoth WestConnex project, which is on track to be completed over the next few years. It is also benefitting from the recent opening of the 'NorthConnex' tunnel, which bypasses a well-known Sydney bottleneck.
Transurban was hit by the coronavirus lockdowns earlier in the year, which forced it to cut its final dividend payout this year to 16 cents a share (down from 30 cents in 2019). Even so, Transurban still offers a trailing yield of 3.18% on current pricing. Transurban is currently rated as a 'buy' by the Motley Fool's Everlasting Income service.
Telstra Corporation Ltd (ASX: TLS)
Despite the Telstra share price rising almost 10% over the past month, the company still offers a hefty dividend on current pricing. Telstra paid out 16 cents per share in fully franked dividends in 2020, a payout level it is also aiming to maintain in 2021 and beyond. That gives Telstra shares a trailing yield of 5.13% (7.33% grossed-up) at the share price of $3.13.
Telstra has been making waves recently with the announcement of a major restructuring last week. Investors have evidently been impressed by the InfraCo Towers, InfraCo Fixed and ServeCo divisions that Telstra will be split into. Well, judging by the recent share price movements anyway. There is speculation that the restructuring will allow Telstra to buy the national broadband network back off the government sometime in the future as well.
Telstra is also currently rated as a 'buy' by the analysts at the Motley Fool's Everlasting Income service, as well as our Dividend Investor service.
