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2 reliable ASX dividend shares for income investors to buy

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Are you looking for some reliable ASX dividend shares to add to your portfolio? 

Then you might want to take a look at the dividend shares listed below. Here’s what you need to know about them:

BWP Trust (ASX: BWP)

The first reliable ASX dividend share to look at is BWP Trust. It is a real estate investment trust (REIT) investing in and managing commercial properties throughout Australia. The majority of the company’s properties are large format retailing properties. These are predominantly warehouses leased to home improvement giant Bunnings Warehouse.

In fact, BWP is the largest owner of Bunnings properties with a total of 68 properties leased to the retailer at present. Bunnings has proven to be a fantastic tenant to have. While many retail landlords have struggled during the pandemic, BWP has continued to thrive thanks to the strong performance of Bunnings.

Pleasingly, Bunnings’ owner, Wesfarmers Ltd (ASX: WES) has reported very strong sales growth so far in FY 2021 for the home improvement business. This appears to indicate that it will be business as usual for BWP’s rental collections this year.

Which, based on management’s commentary, is likely to mean a distribution of at least 18.29 cents per unit. And with the current BWP share price trading at $4.30, this will mean a 4.25% yield for investors. 

Rural Funds Group (ASX: RFF)

Another reliable dividend share to look at is Rural Funds. It is a REIT that owns a diversified portfolio of high quality Australian agricultural assets.

At the end of FY 2020, Rural Funds owned a total of 61 properties with a combined value of $1 billion and an ultra long weighted average lease expiry (WALE) of 10.9 years. From these properties it grew its adjusted funds from operations (AFFO) to 11.7 cents per share, allowing the Rural Funds board to increase its full year distribution to 10.8 cents per share.

In line with management’s targets, it plans to increase its dividend again this year. It intends to increase its distribution by 4% to 11.28 cents per share. Which based on the current Rural Funds share price, works out to be a generous 4.55% yield.

Where to invest $1,000 right now

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*Returns as of February 15th 2021

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED. The Motley Fool Australia owns shares of Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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