With interest rates likely to remain low for some time to come, the yields on the ASX dividend shares listed below could be even more attractive than normal for income investors.
Here’s what you need to know about these dividend shares:
The first ASX dividend share to take a look at is BWP. It is a retail property company and the largest owner of Bunnings Warehouse sites across Australia. At the end of the first half, the company had a total of 68 properties which were leased to the home improvement giant.
Bunnings has proven to be the dream tenant for BWP. Thanks to its strong performance over the last few years, despite whatever the economy threw at it, BWP has been able to grow its rental income at a decent rate. This has led to the company’s distribution also growing nicely, much to the delight of income investors.
This year the company’s board 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 4.3% dividend yield.
Things haven’t been quite as positive for this shopping centre operator. Its Westfield properties in Australia have struggled during the pandemic after some retailers were forced to close down and others fought hard for rental reductions.
Positively, the worst appears to be over for the company now and a return to growth could be on the cards.
Goldman Sachs is positive on Scentre, particularly given Australian inflation expectations. It notes that expectations are currently at their highest level since 2015, which is good news for Scentre. This is due to the company being far more positively leveraged to inflation than any other Australian real estate investment trust under its coverage.
In light of this, the broker recently reiterated its buy rating and $3.60 price target on the company’s shares. It is also forecasting a 14 cents per share dividend in FY 2021. Based on the latest Scentre share price, this equates to a 4.9% yield.