Are you looking to add some dividend shares to your portfolio next week? Then take a look at the ones listed below.
Here’s why they could be top options for income investors:
BWP Trust (ASX: BWP)
When it comes to retail property, there are few retailers (if any) that you would want more as a tenant than Bunnings Warehouse.
So, as the largest owner of Bunnings Warehouse sites across Australia, BWP is the envy of many retail landlords.
At the last count, BWP had a total of 68 properties which were leased to the home improvement giant. And thanks to its key tenant’s strong performance during the pandemic, it has been able to collect rent as normal this year.
This led to BWP reporting a 6% increase in profit during the first half of FY 2021, allowing the BWP board to reaffirm its plans to pay a full year distribution of ~18.3 cents per share.
Based on the current BWP share price, this equates to an attractive 4.45% dividend yield.
Telstra Corporation Ltd (ASX: TLS)
Another dividend share to look at is this telco giant. Telstra’s outlook has improved greatly recently thanks to the easing NBN headwind, rational competition, lucrative 5G internet, and the planned splitting up of the company to unlock value.
In fact, management expects the above to put Telstra in a position to return to growth as soon as next year.
In light of this, the company’s dividend cuts appear to be over, with almost all analysts now expecting 16 cents per share to be the bottom.
So, with the Telstra share price ending the week at $3.41, this means its shares will provide investors with a fully franked dividend yield of approximately 4.7%. Given how low interest rates have fallen in recent years, this is certainly an attractive yield for income investors.