If you have money ready to deploy to try to find dividends from ASX shares then there are some contenders to think about.
Here are three to consider:
Pacific Current Group Ltd (ASX: PAC)
This company is a business which invests in fund managers across the world. It then helps those fund managers grow with capital and/or Pacific's expertise.
Dean Fremder of Perpetual Limited (ASX: PPT) said when Pacific Current shares were around this level: "The stock's really cheap. It is on nine times earnings. It's growing earnings at double digits, so more than 10% a year. It's paying a 6.5% fully franked yield. And most excitingly, we think they can pay out a much larger portion of their earnings as dividends. We see no reason, given the surplus franking credits they have on the balance sheet, they can't be paying a 10 or 11% fully franked yield in the next 12 months. So, really excited about that one."
In FY20 the ASX dividend share grew its dividend by 40% to $0.35 per share. This was supported by an 18% increase in underlying earnings per share (EPS) with funds under management (FUM) growing by 62% to $93 billion.
Pacific's quarterly update for the three months to 31 December 2020 showed FUM had grown to AU$112.8 billion. It would have been even higher if the Australian dollar hadn't strengthened significantly against the US dollar. Most of the growth was delivered by key investment manager GQG, which grew FUM by more than US$35 billion during the 2020 calendar year.
At the current Pacific Current share price it has a grossed-up dividend yield of 8.2%.
Brickworks Limited (ASX: BKW)
Brickworks is an ASX dividend share with one of the longest records on the ASX – it hasn't cut its dividend for over four decades.
The dividend has been supported over the decades by its large holding of Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) shares. Brickworks currently owns around 40% of the business after selling some shares to fund its US acquisitions.
Soul Patts is an investment conglomerate that has been paying a dividend every year since it listed in 1903. It has a diversified portfolio across various industries including telecommunications, resources, pharmacies, building products, agriculture and financial services.
Over the last decade or two the Brickworks dividend has also been supported by its property earnings. It owns a 50% stake in an industrial property trust along with Goodman Group (ASX: GMG). Properties are built on excess Brickworks land. As more properties are completed, it increases the value of the trust and grows the rental profit distributions.
At the current Brickworks share price it has a grossed-up dividend yield of 4.3%.
Charter Hall Long WALE REIT (ASX: CLW)
This ASX dividend share is a real estate investment trust (REIT). It is liked by a few different brokers including Citi.
Charter Hall Long WALE REIT currently is guiding that its operating EPS and distribution will be at least 29.1 cents per unit, which meant that guidance was left unchanged from previous guidance.
The REIT reported its FY21 half-year result this week which showed that operating EPS and the distribution were up 3.6% to 14.5 cents per unit.
Citi thinks that considering the FY21 half-year result was slightly better than the broker was expecting, there is upside considering Charter Hall Long WALE REIT bought around $700 million of new assets during the period.
The ASX dividend share has a weighted average lease expiry (WALE) of 14.1 years, which is one of the longest in the REIT sector.
It has a number of major, stable tenants including Telstra Corporation Ltd (ASX: TLS), Australian government entities, BP and Woolworths Group Ltd (ASX: WOW).
At the current Charter Hall Long WALE REIT share price, it has a distribution yield of at least 6% for FY21.
