If you are lucky enough to have $5,000 to invest in ASX dividend shares, then read on.
That's because listed below are three top ASX shares that could be great picks for income investors.
Here's what you need to know about them:
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HomeCo Daily Needs REIT (ASX: HDN)
The first ASX dividend share to consider is HomeCo Daily Needs REIT.
This property company owns a portfolio of neighbourhood retail, large-format retail, healthcare, and other assets linked to everyday spending.
Its tenants include supermarkets, pharmacies, healthcare providers, childcare operators, pet stores, and other businesses that people continue to use through different economic conditions.
I think this gives HomeCo Daily Needs REIT an attractive income profile. Rental income is supported by a diverse tenant base, while the focus on daily needs can make the portfolio more defensive than property assets that rely heavily on discretionary spending.
For income investors, that combination of recurring rent and a portfolio built around practical, well-used properties could make this a solid long-term option.
Super Retail Group Ltd (ASX: SUL)
Another ASX dividend share I would look at is Super Retail Group.
It owns some of Australia's best-known retail brands. This includes Supercheap Auto, rebel, BCF, and Macpac, which have built strong positions in their respective markets.
Supercheap Auto benefits from ongoing spending on vehicle maintenance and accessories, BCF is well established in outdoor recreation, rebel is a major sporting goods retailer, and Macpac gives the group exposure to outdoor clothing and equipment. That creates several different sources of earnings under one roof.
Retail spending can be up and down, but Super Retail has established brands, a large store network, and loyal customer bases.
If the company can keep generating strong cash flow from these businesses, it should remain well placed to reward shareholders with dividends over time.
Woolworths Group Ltd (ASX: WOW)
A final ASX dividend share for income investors to consider is Woolworths Group.
Woolworths is at the centre of everyday household spending thanks to its vast supermarket operations. That makes it quite different from many retailers, which may struggle when consumers are under pressure to watch their spending.
And while Woolworths is not necessarily the ASX share investors would choose for the highest dividend yield, it could be a good option for someone building a diversified dividend portfolio.
After all, its combination of defensive earnings, strong cash generation, and a long history of returning money to shareholders is attractive.
