When it comes to ASX dividend shares, income (preferably fully franked) is the name of the game. And yet, many ASX shares that pay a dividend have not been fantastic income shares to own. Especially when you take into account last year with the economic effects of the coronavirus pandemic and all.
With record low interest rates seemingly here to stay for a while, finding income on the share market has arguably never been more important from an investing perspective. So here are 2 ASX dividend shares that offer up a trailing dividend yield of 5% or greater today.
Coles Group Ltd (ASX: COL)
Coles is the first ASX dividend share to consider today. This grocery giant was one of the few ASX shares that actually managed to raise its dividend last year, a feat that managed to evade even its arch-rival Woolworths Group Ltd (ASX: WOW).
Coles potentially offers a lot of value as a dividend share due to its inelastic nature. We all need food, drinks and household items, and all of the time at that. As such, since that’s what Coles sells, its earnings base is very stable and somewhat immune to economic downturns.
The last two dividends that Coles paid out amounted to a September final dividend of 27.5 cents per share, and a March interim dividend of 33 cents per share, both fully franked. That gives the current Coles share price a trailing yield of 3.68% today. That grosses-up to 5.26% with full franking credits.
Telstra Corporation Ltd (ASX :TLS)
Telstra is another ASX dividend share to consider today. This ASX telco has long held a reputation as an income juggernaut, despite the infamous payout slash of 2017. That reputation continues today, largely thanks to Telstra’s ability to keep its rather generous dividend payouts steady last year at 2019 levels, despite the pandemic.
Telstra shares have actually had a few very successful months, share price wise. Telstra is up close to 30% since late October last year, and made a new 52-week high earlier this month.
Investors have been appreciating the company’s plans to structurally separate by the end of the year. Telstra’s successful (so far) and ongoing 5G rollout probably isn’t hurting sentiment either. That has dragged Telstra’s trailing dividend yield down a little. But the company’s 16 cents per share annual dividend still translates into a 4.68% trailing yield on current pricing. That grosses-up to 6.68% with Telstra’s full franking.