My Top 5 ASX Dividend Stocks for Regular Income
By Bruce Jackson with Tom Richardson
It’s the ultimate goal for so many investors: to build a share portfolio that provides plenty of dividend income in retirement.
If you’re anything like me, you’re also concerned about preserving your capital and minimising your risks. Fortunately, if you diversify your holdings across different sectors of the economy, you can protect your portfolio from some of the market’s gyrations.
Here are five top ASX dividend stock ideas to get you started building your diversified income portfolio.
Think about it this way: If you owned equal portions of each of these 5 stocks, your portfolio would yield around 5% overall – and that’s before you take into account franking credits. That beats the pants off term deposits.
Your instant 5-share income portfolio
Insurance company Suncorp Group’s (ASX: SUN) dividend yield is 5.8%, fully franked, and analysts are forecasting 2015’s payout to increase a further 10%. The company’s dividends have already effectively doubled since 2011 – and with shares trading at about 13 times estimated forward earnings, right now could be an opportune time to pick up shares.
Just like insurance companies, infrastructure plays can be a godsend to income investors. Consider gas transporter APA Group’s (ASX: APA) 4.5% dividend yield. The company’s consistent payouts make it one of the most reliable options going for prudent investors, and owning the shares offers exposure to Australia’s fast-growing LNG industry, too.
With an estimated 4.7% yield, software and technology business Iress Ltd (ASX: IRE) is another idea. The company has substantial offshore income streams which could translate into larger profits — and larger dividends — especially if the Australian dollar continues to trend down against other major currencies.
Don’t forget real estate, another quality source of income for investors. Mirvac Group (ASX: MGR), with its heavy exposure to the high-performing Sydney and east coast property markets, looks to be a solid investment. The current dividend yield is 5.4%, with steady dividend growth expected through 2016.
Telstra (ASX: TLS) is an investor favourite for good reason. Its 30 cents per share payout is legendary, and with rising profits and millions of customers, the business is not just solid, but growing with a 5.4% fully franked yield. In fact, Telstra has increased its dividend three times in the last two years!
An even better bet than Telstra
My family happily owns Telstra. The fully franked dividend looks rock solid, and the company has got some exciting growth opportunities ahead.
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The Motley Fool's disclosure policy is accountable. Please remember that investments can go up and down. Past performance is not necessarily indicative of future returns. The Motley Fool does not guarantee the performance of, or returns on any investment. All figures are accurate as of 31 August 2015. Authorised by Bruce Jackson.
Any and all advice contained in the above content is general advice that has not taken into account your personal circumstances. Please refer to our Financial Services Guide (FSG) for more information.