Even a 5% yield wasn't that hard to find until quite recently. The ASX's ascent to a series of new record highs earlier this year was good news for most ASX investors. But rising stock prices mean lower dividend yields if the payouts don't rise in tandem. That they haven't been for most prominent ASX dividend shares.

Shares that investors may have been used to seeing with yields of 4 to 5% in years gone by are now offering noticeably lower yields.

That's true from Telstra Group Ltd (ASX: TLS) to Wesfarmers Ltd (ASX: WES), from Coles Group Ltd (ASX: COL) to Westpac Banking Corp (ASX: WBC). And particularly so for Commonwealth Bank of Australia (ASX: CBA), which spent much of 2025 with a very unbank-like yield of below 3%.

But let's check out an ASX income ETF that has far more than that on the table today.

An ASX income ETF with a 7% yield?

That ASX ETF is the SPDR S&P Global Dividend ETF (ASX: WDIV). This fund is a dividend-focused ETF that holds around 100 high-yielding companies sourced from all around the world. These companies are assessed for their dividend stability over the past ten years. Any stocks that have cut their payouts in this period are excluded.

It holds companies from the United States, Canada and Japan, as well as from China, Hong Kong and Europe. Australia is represented as well, although it contributes about 2% to WDIV's overall portfolio.

Some of this income ETF's top positions include CVS Healthcare Corporation, Altria Group, Pfizer and Mitsui Chemicals. The ASX's APA Group (ASX: APA) flies the local flag.

But let's talk dividends. WDIV ETF pays out two dividend distributions annually. Over 2025, investors enjoyed a January dividend distribution worth 30.94 cents per share, as well as the July payment worth $1.26 per share. At the current WDIV unit price of $21.95 (at the time of writing), that annual total of $1.57 per unit gives this ASX income ETF a trailing yield of 7.15%.

Before you rush out to buy this ETF to secure a 7% yield, though, investors should be aware that WDIV's payouts, like most ETFs, do bounce around from year to year.

Yes, investors got a bumper year in 2025. But if this ETF had instead paid out 91.7 cents per share in payouts over 2025, as it did in 2024, its yield would be about 4.18% today.

Even so, this ASX income ETF has a strong history of paying large upfront dividends from a portfolio of stocks that have demonstrated defensiveness when it comes to payouts. That's arguably not something to ignore for income investors in the current environment.

The post This ASX income ETF is trading on a 7% yield right now appeared first on The Motley Fool Australia.

Except for the SPDR S&P 500 ETF Trust (ASX: SPY), the ex-dividend date for the distributions listed below is today.

The payment date is 11 July.

Here are the details.

How much will SPDR ASX ETF investors get?

The SPDR S&P/ASX 200 ETF (ASX: STW) will pay 66.6712 cents in cash per unit. The ETF will also pay 13.5988 cents worth of franking credits and 0.2108 cents worth of foreign tax credits.

The SPDR S&P/ASX iBoxx Australian Government Bond ETF (ASX: GOVT) will pay 18.0410 cents in cash per unit.

The SPDR S&P/ASX 200 ESG ETF (ASX: E200) will pay 107.1402 cents in cash per unit, plus 5.0135 cents worth of franking credits and 0.0323 cents worth of foreign tax credits.

The SPDR S&P/ASX 50 ETF (ASX: SFY) will pay 64.0319 cents in cash per unit plus 13.2627 cents worth of franking credits.

The SPDR MSCI Australia Select High Dividend Yield ETF (ASX: SYI) will pay 264.7328 cents in cash per unit. The ETF will also pay 7.8319 cents worth of franking credits and 0.0002 cents worth of foreign tax credits.

The SPDR S&P/ASX Small Ordinaries ETF (ASX: SSO) will pay 21.5897 cents in cash per unit, plus 6.9222 cents worth of franking credits and 0.1865 cents worth of foreign tax credits.

The SPDR S&P/ASX 200 Resources ETF (ASX: OZR) will pay 20.6316 cents in cash per unit, plus 8.0525 cents worth of franking credits and 0.03770 cents worth of foreign tax credits.

But wait, there's more!

The SPDR S&P/ASX 200 Listed Property ETF (ASX: SLF) will pay 31.5595 cents in cash per unit. The ETF will also pay 0.0144 cents worth of franking credits and 0.0475 cents worth of foreign tax credits.

The SPDR MSCI World Quality Mix ETF (ASX: QMIX) will pay 109.9871 cents in cash per unit, plus 0.5967 cents worth of franking credits and 6.4629 cents worth of foreign tax credits.

The SPDR S&P Global Dividend ETF (AUS) (ASX: WDIV) will pay 125.7777 cents in cash per unit, plus 0.0365 cents worth of franking credits and 9.1763 cents worth of foreign tax credits.

The SPDR S&P World ex Australia Carbon Aware ETF (ASX: WXOZ) will pay 345.1500 cents in cash per unit. The ETF will also pay 11.4313 cents worth of foreign tax credits.

The SPDR S&P/ASX 200 Financials Ex-A-REIT Fund ETF (ASX: OZF) will pay 70.5192 cents in cash per unit plus 11.4581 cents worth of franking credits.

The SPDR S&P 500 ETF Trust (ASX: SPY) will pay US 1.761117 cents in cash per unit. The ex-dividend date was 20 June. The expected pay date for ASX investors is 14 August. State Street will announce the foreign exchange rate for the conversion into Australian currency in due course.

The post Own SPDR ASX ETFs? Here is your next dividend and when you'll receive it appeared first on The Motley Fool Australia.

After all, utilities are businesses that tend to provide goods and services that we all use on a regular basis. This could be electricity, gas, water, telecommunications, or transport services. As such, their cash flows, and thus dividends, are typically some of the most defensive and dependable you can find on the market.

This makes utility shares very desirable for retirees and other investors who prioritise stability and income from their stock market portfolios rather than high rates of growth or market outperformance.

Whilst the ASX doesn't have any ETFs that are explicitly dedicated to utility stocks, it does have two exchange-traded funds that heavily employ their services to deliver reliable dividend income. Let's dive in.

Two ASX dividend ETFs that feature utility shares

BetaShares Global Income Leaders ETF (ASX: INCM)

This ASX ETF from provider BetaShares invests in a portfolio of global shares that are selected for their attractive and sustainable dividend income potential. Some of the utility shares it holds include AT&T, Verizon, Duke Energy, and American Electric Power Co.

Some of its other non-utility holdings are names you may know, too, such as Kraft Heinz, Chevron, JM Smucker Co, and IBM.

This ETF pays out a dividend distribution every three months, which may please some ASX income investors. Over the past 12 months, INCM's four quarterly dividends amounted to 79.2 cents per unit, which gives this ASX ETF a trailing dividend distribution yield of 4.09% at current pricing.

SPDR S&P Global Dividend Fund (ASX: WDIV)

Next up, we have this ASX ETF from State Street Global Advisors. This exchange-traded fund functions similarly to INCM, holding over 100 dividend shares. These hail from multiple countries across the globe. This ETF's stocks are also selected for their dividend sustainability, as well as strong cash flows and defensive nature.

It also holds utility shares like AT&T, Saudi Electric Co, China Railway Group, Canadian Utilities, and our very own APA Group (ASX: APA). In addition, WDIV offers other defensive stocks too, such as Altria, Pfizer, and Amcor.

As is typical on the ASX, WDIV follows a six-month dividend distribution schedule. Over the past 12 months, this ASX ETF's dividend distributions have totaled 88 cents per share. That gives this ETF a trailing dividend distribution yield of 4.39% at current pricing.

The post Power up your defences: 2 ASX utility ETFs for steady income appeared first on The Motley Fool Australia.

Most investors have probably heard of the Vanguard Australian Shares Index ETF (ASX: VAS) and the Vanguard Australian Shares High Yield ETF (ASX: VHY). They own plenty of ASX blue-chip shares in their holdings. They certainly do offer a good dividend yield, but they're largely focused on ASX bank shares and ASX mining shares.

I think if investors are requiring passive income, it could be a good idea to get more diversification, which could help protect against any particular risks for a specific sector. That's why I like the look of the below two ASX ETFs.

SPDR S&P Global Dividend ETF (ASX: WDIV)

For investors concerned about possible dividend cuts, this fund could be an effective option.

The WDIV ETF aims to own approximately 100 relatively high dividend-yielding companies that have increased or maintained their payouts for at least 10 consecutive years.

The number of stocks from each country is capped at 20, while the weighting for each individual stock is capped at 3%. A maximum of 25% is allowed for each sector (at the rebalancing date).

It has an annual management cost of 0.35%, which I think is reasonable for how much work has gone into constructing this portfolio.

Currently, the fund has double-digit exposure to four sectors: financials (25.4%), utilities (16.8%), real estate (14.3%), and industrials (10.2%).

According to the ETF's provider, the dividend yield for the WDIV ETF is currently 5.6%, which I'd describe as impressive for a high-yield passive income option.  

Betashares FTSE 100 ETF (ASX: F100)

This ASX ETF gives investors exposure to 100 of the biggest companies on the UK stock market.

UK shares typically trade at a fairly attractive price-earnings (P/E) ratio, which enables a reasonably high dividend yield.

According to Betashares, as of 31 December 2024, the F100 ETF had a distribution yield of 3.4%. I think that's appealing compared to most other internationally focused ASX ETFs (which aren't specifically created to hunt for dividends).

Investors may recognise some of the biggest positions in the portfolio, including AstraZeneca, Shell, HSBC, and Unilever. These are strong, global businesses that just happen to be listed in London.

Pleasingly, in the past three years to 31 January 2025, this ASX ETF has returned an average of 10.3% per annum. Within that, it has provided a decent level of dividends, so I think it's a solid high-yield passive income option.

The post Here are my 2 favourite ASX ETFs to buy for high-yield passive income in 2025 appeared first on The Motley Fool Australia.

The ASX is quite heavily weighted towards ASX mining shares and banks, so getting exposure to different industries and geographies could be a good move for Aussies focused on the domestic economy.

With many banks competing for the same borrowers and savers, profit margins have been pushed down. The high RBA interest rate is leading to some borrowers getting into arrears, which could challenge profitability and may hurt ANZ's profit and dividend growth.

Considering these difficulties, I think it could be a good idea to diversify if an investor's portfolio is too heavily focused on an ASX bank share like ANZ.

Telstra Group Ltd (ASX: TLS)

In my eyes, Telstra is the leading telecommunications business in Australia, with the most subscribers, the best collection of spectrum assets and the widest network coverage.

The business has been steadily growing its annual dividend per share over the last few years. In FY24, it grew its dividend by 6% to 18 cents per share, which is a grossed-up (including franking credits) dividend yield of 6.6%.

I like the idea of owning Telstra shares for passive income because of its stronger market position (compared to ANZ's loan market position), its ability to increase prices for customers without losing market share, its operating leverage, and its defensive dividend.

If I had to choose an ASX blue-chip share from Telstra and ANZ shares, I'd choose Telstra.

SPDR S&P Global Dividend ETF (ASX: WDIV)

What's better than owning one dividend stock? How about owning a whole portfolio of attractive dividend payers?

As the name suggests, this exchange-traded fund (ETF) is about investing in various stocks from across the world with good dividends.

The businesses within this fund have increased their dividend every year for at least the last ten years. They also need to have a relatively high dividend yield. When you combine those two elements, it's a powerful combination for investors focused on passive income.

The biggest positions in the portfolio are currently Altria, Highwoods, Solvay, and Capital Power. The portfolio has 94 holdings, which is a pleasing level of diversification.

According to State Street Global Advisors, the portfolio of businesses is collectively expected to grow earnings per share (EPS) by 6.4% over the next three to five years.

The WDIV ETF currently has a dividend yield of 5.1%, and since its inception in November 2023, it has delivered an average fund distribution return per year of 5.2%.

I'm not expecting much capital growth from this fund, but it does offer very different exposure to ANZ shares.

The post Overinvested in ANZ shares? Here are two alternative ASX passive income options appeared first on The Motley Fool Australia.

Yes, the going looks good for ASX investors right now. But stock markets are inherently volatile — which means plenty more ups (and downs!) to come.

One strategy to help buffer your wealth from market swings and individual stock fluctuations is to include some quality, dividend-paying ASX shares in your portfolio.

Even if you're not seeking dividends for immediate income, these regular payments or reinvestments can significantly boost your investment returns over time.

With the market trading around unprecedented levels, we asked our Foolish writers which ASX dividend shares they still think offer great buying in September.

Here's what the team came up with.

5 best ASX dividend shares for September 2024 (smallest to largest)

• SPDR S&P Global Dividend AUD ETF (ASX: WDIV), $270.5 million
• Collins Foods Ltd (ASX: CKF), $964.90 million
• Regal Partners Ltd (ASX: RPL), $1.05 billion
• Washington H Soul Pattinson & Company Ltd (ASX: SOL), $12.29 billion
• Westpac Banking Corp (ASX: WBC), $114.37 billion

(Market capitalisations as of market close 18 September 2024).

Why our Foolish writers love these ASX passive income stocks

SPDR S&P Global Dividend AUD ETF

What it does: The SPDR S&P Global Dividend Fund is an exchange-traded fund (ETF) that specifically targets dividend-paying shares. Not just any ASX shares though – this ETF looks for quality income stocks from all around the world.

By Sebastian Bowen: This September, I'm eyeing out the SPDR S&P Global Dividend Fund as an income investment. The ASX is full of quality dividend stocks. But, with the recent fresh all-time highs that we are seeing on the Australian stock market, I'm sure you've noticed that many of the best payers are starting to look relatively expensive. As such, I'm currently looking for some decent alternatives.

The WDIV ETF is arguably one of those quality alternatives. This fund holds a diversified portfolio of global shares with track records of delivering strong and consistently rising payouts. It currently includes names like Altria, Capital Power Corp, Pfizer, and Unilever.

This ETF's portfolio draws from more than a dozen countries, including the United States, Canada, Japan, Korea, and Taiwan. This diversity adds a lot of appeal in my eyes.

The SPDR S&P Global Dividend Fund pays out quarterly dividend distributions, which is another bonus. At recent pricing, the fund was trading on a trailing yield of 4.8%.

Motley Fool contributor Sebastian Bowen owns shares of Altria and Unilever.

Collins Foods Ltd

What it does: Collins Foods operates as a franchisee of 381 KFC and Taco Bell stores across Australia and Europe. The company's origin story stretches back to 1968 when James Collins began managing KFC and Sizzler restaurants in Australia and the United States.

By Mitchell Lawler: You won't normally see this restaurant operator grouped with the dividend deities of the ASX. Maybe it's the perceived instability of the takeout food industry or the smaller 3.4% dividend yield, but Collins Foods delivers finger-licking good value, in my opinion. 

The last four years have thrown the kitchen sink at franchisees: Inflation, falling productivity, and shortages. What Collins Foods has working in its favour is scale. 

If cost pressures persist, I suspect it will be survival of the biggest. Few fast food franchisees have the size and bargaining power of Collins Food in Australia – yet the company is trading on a price-to-earnings (P/E) ratio almost on par with the depths of the COVID crash.

Motley Fool contributor Mitchell Lawler does not own shares of Collins Foods Ltd.

Regal Partners Ltd

What it does: Regal Partners is a boutique asset manager that operates several alternative investment strategies. It invests in public and private securities across the globe, with a focus on Australia, employing market-neutral and absolute return strategies. 

By James Mickleboro:  I think Regal Partners would be a great ASX dividend share to buy in September.

Last month, it released its half-year report and delivered a very strong result that was largely ignored by the market. Its strong investment performance led to net client inflows increasing 106% over the prior corresponding period, which helped drive a 349% increase in normalised half-year net profit after tax to $59 million.

This allowed the company to increase its fully franked interim dividend by 60% to 8 cents per share. And while this dividend is now locked up, there are more generous payouts on the way, according to analysts at Bell Potter. The broker is forecasting a 13.1 cents per share fully franked dividend in FY 2024 and then 16.1 cents per share in FY 2025. Based on its current share price of $3.23, this will mean dividend yields of 4% and 5%, respectively.

This doesn't include any potential profit boost that might come from the company's proposed acquisition of Platinum Asset Management Ltd (ASX: PTM), which was announced this week.

Bell Potter also sees major upside potential for Regal shares with its buy rating and $4.30 price target.

Motley Fool contributor James Mickleboro does not own shares of Regal Partners Ltd.

Washington H Soul Pattinson & Company Ltd

What it does:  Soul Patts is a 120-year-old business that takes stakes in various listed companies. It also operates some private equity companies and has credit investments.

By Tristan Harrison: The Soul Patts share price is not currently trading near all-time highs, unlike many other ASX shares.

It's also not a rapidly growing business, but I believe it's the type of investment that can be bought now and owned for the next two decades without too many worries.

I like the company's diversified portfolio across various sectors, including telecommunications, resources, building products, property, credit, agriculture, electrification, and even swimming schools!

Soul Patts has the flexibility to make investments of significant size in almost any industry. This means it can continue to adapt its portfolio to future conditions and help ensure long-term success.

The company pays dividends from the investment cash flow it receives from its portfolio. This ASX dividend stock has increased its annual ordinary payout every year since 2000, which is the longest dividend growth record on the ASX.

Soul Patts is due to release its FY24 result next week and declare another dividend, which I expect to be bigger than FY23's final dividend. The company's last two dividends amount to 91 cents per share, which translates into a grossed-up dividend yield of approximately 4% on current pricing. 

Motley Fool contributor Tristan Harrison owns shares of Washington H. Soul Pattinson & Company Ltd.

Westpac Banking Corp

What it does: Established in 1817 as the Bank of New South Wales, Westpac is Australia's oldest banking and financial services group. The 'big four' bank has operations throughout Australia, New Zealand, and the near Pacific region.

By Bernd Struben: I like Westpac shares both for their reliable, fully franked dividends and the potential for further share price growth.

On the share price front, Westpac has been the best-performing of the big four Aussie banks over the past 12 months, with shares up by 53%. This has been supported by strong financial results along with the bank's $2.5 billion share buyback program.

And with the Aussie and US economies eyeing a soft landing, I believe the Westpac share price can continue to outperform (though I don't expect another 50% run higher over the year ahead!).

As for that passive income, Westpac has been increasing its dividends every year since 2020, a trend I like to see.

Over the past year, the ASX 200 bank paid a total of $1.62 in dividends, up 21% from FY 2023.

At yesterday's closing price of $33.16, that sees Westpac shares trade on a fully franked trailing dividend yield of 4.9%.

Motley Fool contributor Bernd Struben does not own shares of Westpac Banking Corp.

The post Top ASX dividend shares to buy in September 2024 appeared first on The Motley Fool Australia.

Yet many ETFs on the ASX offer huge dividend potential, which any income investor can use to bolster the franked dividends coming out of their ASX share portfolios.

Let's talk about three of them.

Three ASX ETFs to buy for big dividend income today

Vanguard Australian Shares High Yield ETF (ASX: VHY)

First up is the ASX's most popular dividend ETF. The Vanguard High Yield ETF holds a portfolio of around 70 of the ASX's best dividend payers. That includes both the ASX shares that sport the highest yields today, as well as the ASX shares identified as having the greatest future income potential.

This portfolio includes famous dividend payers like Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP), and Telstra Group Ltd (ASX: TLS), as well as dividend growth beasts like Premier Investments Limited (ASX: PMV) and Dicker Data Ltd (ASX: DDR).

This VHY ETF pays out dividend distributions every quarter. At current pricing, the last four of these dividend distributions give the Vanguard High Yield ETF a trailing dividend yield of 5.84%.

VanEck Australia Banks ETF (ASX: MVB)

Turning to a different fund now, the VanEck Australian Banks ETF might be another ASX ETF to consider if you wish to maximise franked dividend income in your portfolio.

ASX banks are well-known income investments and are often the first choice of an income investor to build a portfolio. But sometimes, it can be difficult to choose between high-quality, lower-yield names like CBA and their smaller-scale but higher-yield rivals like Bank of Queensland Ltd (ASX: BOQ).

This ASX ETF from VanEck means you don't have to choose or, indeed, hold multiple bank shares within your portfolio. Instead, you get an average return and yield of the seven largest bank stocks on the market.

MVB also pays out quarterly dividends and currently offers a trailing yield of 5.23%.

SPDR S&P Global Dividend ETF (ASX: WDIV)

The ASX is one of the best stock markets in the world when it comes to dividend yields. However, I still think it's important to diversify your sources of income to include shares that aren't listed on the ASX.

You may not get much in the way of franking credits here, but balance is always a good thing when it comes to investing, in my view.

This ETF from SPDR is a great way to add some diversity to an ASX income portfolio. WDIV represents a portfolio of around 100 different dividend payers from all over the world. Some are from the United States and Canada, others from Japan, Hong Kong and Switzerland.

Unlike the above ASX ETFs, the S&P Global Dividend Fund pays out biannual dividends. It is currently trading on a trailing yield of 4.88%.

The post Three ASX ETFs to buy today for big dividend income appeared first on The Motley Fool Australia.

Investors seem to love the diversification and simplicity that ETFs offer, all for what is usually a relatively cheap price (at least compared to what we used to pay managed funds).

As it stands today, simple index funds such as the Vanguard Australian Shares Index ETF (ASX: VAS) and the iShares S&P 500 ETF (ASX: IVV) are still the most popular ETFs on the ASX. But dividend ETFs have also been growing in popularity over the past few years.

How do ASX dividend ETFs work?

A dividend ETF works by selecting a basket of ASX shares that fulfil certain requirements when it comes to dividends. These requirements vary from fund to fund. But they generally include criteria such as a significant dividend yield (preferably with full franking credits attached), financial strength and stability, and a mature business generating plenty of cash flow.

Usually, these dividend ETFs hold fewer underlying shares than a full index fund. For example, the VAS and IVV ETFs named above generally hold around 300 and 500 individual companies respectively. But the Vanguard Australian Shares High Yield ETF (ASX: VHY) holds 75 at the latest count. The iShares S&P/ASX Dividend Opportunities ESG Screened ETF (ASX: IHD) has 49 holdings.

Some of the largest holdings in these two ETFs include shares like BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), Rio Tinto Limited (ASX: RIO) and National Australia Bank Ltd (ASX: NAB).

Here are some of the prominent ASX dividend ETFs available on the markets today:

• Vanguard Australian Shares High Yield ETF (ASX: VHY)
• iShares S&P/ASX Dividend Opportunities ESG Screened ETF (ASX: IHD)
• VanEck Morningstar Australian Moat Income ETF (ASX: DVDY)
• SPDR MSCI Australia Select High Dividend Yield Fund (ASX: SYI)
• BetaShares Australian Dividend Harvester Fund (ASX: HVST)
• Global X S&P/ASX 300 High Dividend ETF (ASX: ZYAU)
• BetaShares S&P 500 Yield Maximiser (ASX: UMAX)
• SPDR S&P Global Dividend Fund (ASX: WDIV)

Generally, these dividend ETFs offer higher dividend yields to ASX investors than what their equivalent index fund might provide. Typically, they also offer quarterly dividend payments (sometimes even monthly).

However, there are some things to watch out for if you go shopping for an ASX dividend ETF.

Things to watch out for when choosing an ASX dividend ETF

Dividend ETFs charge higher fees

If you're looking for the lowest-cost ETFs on the market, it's almost always pure index funds you'll end up with. Dividend ETFs normally charge higher fees for their tailored services. So make sure you compare the fees of an ETF you're looking at to see if they are worth the extra charges you might be asked to pay.

Performance

Although not a universal rule, many dividend ETFs sacrifice overall returns in order to boost the income yield you can expect from your investment. Now some investors who perhaps live off of their dividends might be okay with this.

However, others might not want to pay extra fees in order to get a lower overall return than they might get from an ordinary index fund. Thus, it might be a good idea to look at both short and long-term returns carefully when considering an income-focused fund.

Structure

Not all dividend ETFs are equal. Most out there will hold a basic portfolio of underlying shares in order to generate income. But others, including the BetaShares Australian Dividend Harvester Fund and the BetaShares S&P 500 Yield Maximiser Fund, use more complex derivatives to provide an income boost.

Make sure you understand how these work before investing, as these funds generally charge a higher management fee for this structure. It can also give their portfolios some different performance characteristics that investors should be aware of.

The post The rise of dividend ETFs in Australia: A new era of investment appeared first on The Motley Fool Australia.

Whilst a dividend-paying share does not offer the same kind of certainty as a term deposit, savings account or bond (far from it), you can be compensated by yields of 3, 4 or 5%. Never a settler, I've found 2 ASX dividend shares that indeed offer yields of more than 5% today, and will (in my view) well into the future.

2 ASX dividend shares offering yields over 5%

Telstra Corporation Ltd (ASX: TLS)

Telstra is our first dividend share offering a yield of more than 5%. The Telstra share price has not had a good month. Investors were spooked by the company's pessimistic FY2020 earnings report released last month. Although Telstra did report an earnings slump of 9.7% and a 14.4% hit to profits, it also reaffirmed it's 16 cents per share dividend. On current share prices, that would give Telstra a trailing dividend yield of 5.63% (or 8.04% grossed up with Telstra's full franking).

Some commentators are assuming that Telstra will have to trim this dividend next financial year due to falling earnings. But looking at Telstra's free cash flow, which should be more than enough to cover a 16 cents per share payout in FY21, I don't agree with this thesis. Thus, I think Telstra remains a top dividend share to buy for income today. Especially at current 52-week low prices.

2) SPDR S&P Global Dividend Fund (ASX: WDIV)

Turning to an exchange-traded fund (ETF) now, here we have this globally focused income fund from SPDR. WDIV holds a basket of 75 dividend-paying shares from around the world, with only companies delivering steady or increasing dividends over the past decade selected. Canada and the United States are heavily weighted in this ETF, as well as Hong Kong and the United Kingdom. Some of WDIV's holdings include Enagas, Nokian Tyres and Japan Tobacco, as well as our own AGL Energy Limited (ASX: AGL) and Commonwealth Bank of Australia (ASX: CBA).

I think getting exposure to dividend-paying shares outside the ASX bubble is a great way to bulk up and diversify an ASX income-focused portfolio. Remember, you're not too diversified if all you hold is four ASX bank shares and a couple of miners. WDIV currently offers a healthy trailing dividend yield of 5.62% and charges a management fee of 0.5% per annum.

The post 2 ASX dividend shares with yields over 5% today appeared first on The Motley Fool Australia.

3 ASX dividend shares to buy this month

1) WAM Leaders Ltd (ASX: WLE)

WAM Leaders is a listed investment company (LIC) run by the reputable Wilson Asset Management. This LIC is a newer addition to the WAM stable, only starting life in May 2016. But since then, it has delivered an average annual return of 9.8% (before fees and taxes). It focuses solely on the top end of the ASX, investing mostly within the ASX 50. Some of its top holdings include Australia and New Zealand Banking Group Limited (ASX: ANZ), Telstra Corporation Ltd (ASX: TLS) and BHP Group Ltd (ASX: BHP).

WAM Leaders recently announced a 3.25 cents per share final dividend, which takes its annualised yield to around 5.73% (or 8.19% grossed-up with full franking).

2) Coles Group Ltd (ASX: COL)

Coles is my second dividend pick for July. This supermarket giant is a highly defensive, recession-resistant business by virtue of the foods, drinks and household essentials it sells. I think these characteristics are especially useful as a dividend investment in the uncertain times we currently all live in.

Looking further ahead, I think Coles' plans to automate its supply lines and distribution networks is a definite positive for the company and should help it deliver plenty of earnings growth down the road. Right now, Coles is offering a trailing dividend yield of 2.38%, which grosses-up to 3.4% with full franking. This yield isn't going to set the world on fire, but it could well be a lot better than what Westpac Banking Corp (ASX: WBC) and ANZ are offering this year.

3) SPDR S&P Global Dividend Fund (ASX: WDIV)

This exchange-traded fund (ETF) isn't one company, but instead holds a basket of dividend-paying shares that hail from all over the world. Having some dividends coming in from outside the ASX is important from a diversification perspective, in my view. And WDIV is a great candidate for providing this international exposure. It only holds companies that have either held steady or increased their dividend payouts over the past 10 years.

It's fairly evenly spread between American, Canadian, Japanese, Hong Kong, British and European companies with even some ASX shares like AGL Energy Limited (ASX: AGL) thrown in. Some other top holdings include Enagas, IG Group, Northland Power and Japan Tobacco.

Today, WDIV is offering a trailing dividend yield of 5.49% (which unfortunately doesn't come with much in the way of franking credits).

The post 3 ASX dividend shares to buy in July appeared first on The Motley Fool Australia.

The ASX banks which were the kings of the ASX divided hill are now its paupers. Dividend aristocrat, Ramsay Health Care Limited (ASX: RHC) has suspended its dividends – ending a 20-year streak of dividend growth. Shares like Transurban Group (ASX: TCL) and Sydney Airport Holdings Pty Ltd (ASX: SYD) which used to be regarded as the safest income providers on the ASX are now struggling to tell investors how much to expect this year.

Considering all of these factors, I think we need to look outside the box for income in 2020. So here are 2 ASX dividend shares that I would consider if I were seeking top-quality income this year.

SPDR S&P Global Dividend Fund (ASX: WDIV)

This exchange-traded fund (ETF) invests in a basket of global shares that are screened for dividend reliability. In order to make the cut, WDIV's holdings need to have either grown, or at least maintained their dividend payments over the past 10 years. As such, I think this is a great option for a diversified income investment in 2020.

Some of this ETF's top holdings include Freenet AG, Enagas, Japan Tobacco and our own AGL Energy Limited (ASX: AGL). It's also fairly well balanced across many different countries (19 in total). WDIV currently offers a trailing dividend yield of 6.13%.

Rio Tinto Limited (ASX: RIO)

I think the ASX resources sector is one of the best avenues to explore for ASX dividend shares in 2020. Most commodity prices have held up remarkably well across the board during the coronavirus pandemic – especially iron ore. And that's primarily what mining giant Rio Tinto is in the business of extracting. Rio has iron ore mines all over the world, as well as several other smaller operations for diamonds, copper and gold.

With iron ore prices now comfortably sitting at multi-year highs above US$100 per tonne, Rio looks set to be able to fund generous dividend payments to its shareholders this year. On current prices, Rio shares are offering a trailing dividend yield of 5.66%, or 8.09% grossed-up. I wouldn't be too surprised if Rio tops this trailing yield in 2020. Especially if iron ore continues to stay near its current levels.

The post 2 top ASX dividend shares for income in 2020 appeared first on The Motley Fool Australia.

2020 has been a topsy-turvy year so far for many reasons, with the shifting paradigm for ASX dividend shares part of the story.

Former ASX dividend share stalwarts like the banks are now dividend cutters. 'Safe' ASX shares like Transurban Group (ASX: TCL) are leaving income investors hanging.

So if I wanted to top up my portfolio's income potential this June, here are 3 ASX shares I would use to do so:

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

'Soul Patts' is one of the best dividend shares on the ASX (in my opinion) and also one of the only shares I trust to keep its dividend flowing this year. In fact, I believe it to be ASX dividend royalty. Soul Patts has paid out a dividend every year of its existence (which goes back to 1903). Not only that, but this company has also increased its dividend payments every year for the last 20 years.

Soul Patts' large stakes in ASX shares like TPG Telecom Ltd (ASX: TPM) and Brickworks Limited (ASX: BKW) pour cash into the company's coffers, whilst also giving it broad exposure to the Australian economy. Thus, if I had to choose a dividend share to buy this June, Soul Patts would be at the top of my list.

WAM Research Limited (ASX: WAX)

WAM Research isn't too far behind though. This is a Listed Investment Company (LIC) that invests in small and mid-cap ASX shares like Tassal Group Limited (ASX: TGR) and City Chic Collective Ltd (ASX: CCX).

This company has proven its know-how, in my view, having delivered an average annual return of 13.4% over the past 10 years. On current prices, WAM Research shares are offering a trailing yield of 6.99%. Although WAX shares usually trade at a premium to their underlying Net Asset Value, I believe this hefty yield more than makes up for this fact.

SPDR S&P Global Dividend Fund (ASX: WDIV)

My last ASX dividend share for June is actually an exchange-traded fund (ETF). WDIV invests in dividend-paying companies from beyond our shores, specifically those which have held or increased their dividends for 10 years or longer. Its holdings are balanced fairly evenly between American, Canadian and Japanese companies, with the United Kingdom, France, Hong Kong and Australia also represented.

Thus, I think this ETF can provide some great global exposure and diversification to an ASX dividend portfolio. Some of its top holdings include Freenet AG, Enagas, Japan Tobacco and our own AGL Energy Limited (ASX: AGL). WDIV offers a trailing yield of 6.01%.

The post 3 top ASX dividend shares to buy this June appeared first on The Motley Fool Australia.

Dividends from ASX banks like Westpac Banking Corp (ASX: WBC) have gone up in smoke. It's the same with distributions from real estate investment trusts (REITs) like Scentre Group (ASX: SCG) and would-be dividend aristocrat Ramsay Health Care Limited (ASX: RHC).

It's a brave new world for income investors, that's for sure.

That's why I think a great strategy for investors seeking dividend income in 2020 is to go for diversification. With an exchange-traded fund (ETF), you can buy dozens (if not hundreds) of income-paying companies within one share!

Here are 3 ideas to get you started:

Vanguard Australian Shares High Yield ETF (ASX: VHY)

This ETF from Vanguard aims to hold a large basket of ASX dividend-paying shares. It currently holds 62 ASX-listed companies, which include the big banks, BHP Group Ltd (ASX: BHP), Telstra Corporation Ltd (ASX: TLS) and Wesfarmers Ltd (ASX: WES).

Although many of these holdings will be pulling back on their dividends in 2020, many will not as well. All in all, I see this ETF as a collection of some of the best yielders on the ASX.

SPDR S&P Global Dividend Fund (ASX: WDIV)

This ETF can be used as a great compliment to VHY as it invests in top-notch dividend payers from around the world.

WDIV only holds stocks that have maintained or increased their dividends over the past 10 years – which is a great filter in my view. There are many defensive companies here, ranging from the utilities sector to energy, REITs and 'sin stocks'.

WDIV has a trailing dividend yield of 6.33%, which isn't bad at all and will provide a solid stream of passive income. Such diversity can do wonders for an ASX-dominated dividend portfolio in my view and as such, I think this ETF is one that any income investors should consider.

iShares S&P/ASX 20 ETF (ASX: ILC)

This ETF from BlackRock is very simple – it simply holds the top 20 companies on the ASX. CSL Limited (ASX: CSL) is, of course, the top holding, followed by the big 4 banks, BHP and Woolworths Group Ltd (ASX: WOW).

So why this ETF over VHY? Well, it's a more conservative choice in that it is defined by holding the largest companies on the ASX – all of which pay dividends. It is a little concentrated in the banking and resources sectors, but the largest holding, CSL, is a notable exception. ILC boasts a trailing dividend yield of 5.52%, which also comes with some franking credits.

The post Forget the ASX banks! Here are 3 ETFs I would buy for income instead appeared first on The Motley Fool Australia.

Normally, most ASX blue-chip companies reward their shareholders with dividend payments periodically. But since most companies' earnings are likely to take a very nasty hit in 2020, I unfortunately think many of these payments will be either materially reduced or eliminated.

But conversely, I think a select group of ASX shares will continue to be in a position to fund strong dividends in 2020 and beyond. Here are three.

WAM Research Limited (ASX: WAX)

WAM Research is a listed investment company (LIC) that has a long history of funding large dividend payments for its investors. One significant advantage of the LIC structure is the ability to 'hoard' profits in a reserve for a rainy day. WAM Research has done just that and currently has a profit reserve of 25.2 cents per share (excluding April's final dividend of 4.9 cents per share).

As you can see, there is plenty of gas in the tank for dividend payments to continue for some time, even if the stock market doesn't do much for a year or two. And the cherry on top? A 4.9 cent per share dividend equates to a grossed-up yield of 12.05%.

SPDR S&P Global Dividend Fund (ASX: WDIV)

This exchange-traded fund tracks a basket of international dividend-paying shares that have either increased or held steady dividends for at least 10 years. For this reason, I think WDIV is a solid choice for income in today's market. Most of WDIV's holdings are in highly inelastic industries like utilities and 'sin' stocks – which means that their earnings should be relatively stable in this tough time. And that should translate into sturdy dividend payments.

On current prices, WDVI's trailing annual payouts equate to a dividend yield of 6.7%.

Coles Group Ltd (ASX: COL)

Coles is a company most Aussies would be familiar with, especially during this coronavirus crisis. Whilst I don't enjoy seeing what has happened with food shortages in our supermarkets, there's no denying is isn't hurting Coles as a business. Therefore, I think Coles is one of the best ASX dividend shares to buy in 2020. You couldn't ask for a more defensive share in today's market in my opinion.

On current prices, Coles shares are offering a grossed-up yield of 3.69% as well, which I think is still appealing in this near-zero interest rate environment.

The post 3 top ASX shares with strong dividend prospects in 2020 appeared first on The Motley Fool Australia.

But fortunately, or unfortunately, that's what investing is all about. None of us could have predicted what has happened. Rewind to January and it seemed as though we were on track for another bumper year of ASX gains. We have to take the good with the bad when it comes to shares – there's no alternative.

So right now, with the S&P/ASX 200 Index (ASX: XJO) having lost around 30% of its value since mid-February and firmly in bear market territory, I think it's an important time to be brave.

Be brave in resisting the urge to 'cut your losses' and just get out of the market (it's normal to feel this way, no matter how irrational).

Be brave in putting your money into a highly volatile market that no one knows where it will be next week, let alone next month or next year.

I myself have tried to follow this path. I've topped up on some of my favourite ASX shares in recent weeks, including WAM Global Ltd (ASX: WGB), MFF Capital Investments Ltd (ASX: MFF), Pact Group Holdings Ltd (ASX: PGH) and Washington H. Soul Pattinson & Co. Ltd (ASX: SOL).

I've even opened up some new positions, including in Ramsay Health Care Limited (ASX: RHC) and WAM Research Limited (ASX: WAX), as well as also dabbling in some quality ETFs that have lost a lot of value, like the SPDR S&P Global Dividend Fund (ASX: WDIV).

I even picked up some Uber Technologies Inc (NASDAQ: UBER) shares.

But it wasn't easy doing this. I was scared that the shares would fall significantly further than my purchase price (which many have). I was scared that some of these companies might be affected by the coronavirus in ways that I didn't yet know (which they still might be). But there are always fears and doubts swirling in this kind of market. And there is no flashing signal that marks the best time to buy shares.

At the bottom of the GFC market crash in early 2009, there were newspaper headlines warning of a Dow Jones Industrial Average of 5,000 (it bottomed at around 7,000).

As the old saying goes, it's always darkest before the dawn.

And when the dawn comes, it's too late to be brave!

The post The importance of being brave in this ASX bear market appeared first on The Motley Fool Australia.

So saying this, here are three ASX dividend shares I would buy for strong income today.

Commonwealth Bank of Australia (ASX: CBA)

CommBank shares have today broken through the $90 per share mark. The ASX's largest bank exceeded expectations with its half-yearly profit report this week and the market has responded in due course.

Still, I think CBA shares are still a solid income buy today with a 4.78% starting yield (6.83% grossed-up). That's a heck of a lot more than you can get from a CommBank term deposit these days, so I would be very happy to have CBA shares in an income portfolio today.

Sydney Airport Holdings Pty Ltd (ASX: SYD)

Another great stock to own for income (in my opinion) is Sydney Airport. This company has a virtual monopoly on air transport in NSW and Sydney, the latter being the premier tourist destination for international travellers. This enables the company to produce rent-like returns for its shareholders, which in turn has translated into a steady stream of rising dividends over the past few years.

Sydney Airport shares have also recently come off all-time highs, which means that today might be a good long-term buying opportunity. With a trailing dividend yield of 4.57%, Sydney Airport is another top buy for income today, in my view.

SPDR S&P Global Dividend Fund (ASX: WDIV)

A final option here is this exchange traded fund (ETF). WDIV holds a basket of shares mostly outside the ASX that focuses on companies with a long track record of paying rising dividends. I think having this kind of ex-Australian income in your dividend portfolio is a great idea from a diversification standpoint.

This ETF holds shares as diverse as Nokian Tyres, Macy's, Enagas and Occidental Petroleum, but also some ASX names like Bendigo and Adelaide Bank Ltd (ASX: BEN).

The S&P Global Dividend fund has a trailing yield of 5.25% – making it a perfect addition to this list, in my opinion.

Foolish takeaway

I think these three high-yielding ASX shares would be fantastic inclusions for an income-focused ASX portfolio today.  The combination of all three offers some nice diversification in my view, and should produce a healthy stream of income for years into the future.

The post 3 ASX dividend shares with solid income yields today appeared first on The Motley Fool Australia.

Paid to shareholders out of the profits of the company, dividends are one of two types of return a shareholder can receive. The other, capital gains, occurs when shares prices increase. Capital gains are only realised when shares are sold and can disappear if share prices fall.

Diversification and dividends

When seeking a reliable and stable source of income via dividends, it is important to consider diversification. Any one company or industry could have a difficult period that could cause it to have to cut dividends. Other companies or industries may experience particularly favourable conditions that could result in higher than anticipated returns to shareholders.

By holding multiple shares across different industries and sectors investors are less exposed to volatility of returns. This is because the returns on each share are imperfectly correlated. This can be expanded beyond the ASX to international shares and different asset classes.

Many investors use ETFs as a quick and easy way to provide "instant" diversification. ETFs are traded on the ASX like ordinary shares and provide exposure to baskets of underlying securities.

Dividend ETFs

The iShares S&P/ASX Dividend Opportunities ETF (ASX: IHD) provides exposure to 50 ASX-listed stocks that offer high dividend yields while also meeting stability, tradeability, and diversification requirements. The ETF returned 16.47% in the year to 31 October and has a 12-month trailing yield of 6.59%.

Management fees are 0.30% and distributions are made quarterly. Top holdings include Wesfarmers Ltd (ASX: WES) (10.62%), Westpac Banking Corp (ASX: WBC) (10.42%), Commonwealth Bank of Australia (ASX: CBA) (9.88%), Woodside Petroleum Limited (ASX: WPL) (9.84%), Rio Tinto Limited (ASX: RIO) (9.02%), and BHP Group Ltd (ASX: BHP) (8.94%).

The SPDR S&P Global Dividend Fund (ASX: WDIV) seeks to track the performance of the S&P Global Dividend Aristocrats AUD Index. The fund made returns of 15.65% in the year to 31 October and had a dividend yield of 4.79%.

Management fees are 0.5% and distributions are made twice yearly. The ETF held 99 stocks at 31 October. Holdings were spread across Canada (21.96%), United States (21.58%), United Kingdom (14.02%), France (7.29%), Japan (7.14%), and Switzerland (4.40%), amongst others.

Top holdings include Hennes & Mauritz AB-B SHS (2.00%), AT&T Inc (1.66%), Klepierre (1.57%), IGM Financial Inc (1.54%), IG Group Holdings PLC (1.53%), and Compass Minerals International (1.50%).

Foolish Takeaway

ETFs provide a quick and easy method of diversifying your portfolio. Reducing the concentration of holdings can reduce the volatility of portfolio returns. These ETFs have been designed to provide a diversified source of dividend returns to investors.

The post ASX ETFs diversified for dividends appeared first on The Motley Fool Australia.

Dividend diversification

Shareholders can reduce the impact of a bad year for an individual company on their portfolio by allocating funds across a range of companies across different sectors and industries. This is known as diversification, and serves to reduce the risk of the overall portfolio. After all, it is less likely that 20 streams of income will be cut off than one. 

Exchange traded funds (ETFs) offer a viable shortcut to this process by themselves holding a basket of securities. Investors can trade the ETF on the ASX like any other share, and in doing so gain exposure to the securities held by the ETF.  

High Yield ETFs

For yield-seeking investors, there are a number of specialised ETFs that exist to cater to this preference. Here's a closer look at 2 such shares.

The iShares S&P/ASX Dividend Opportunities ETF (ASX: IHD) provides exposure to 50 ASX-listed stocks that offer high dividend yields while also meeting stability, tradeability, and diversification requirements. The ETF returned 16.47% in the year to 31 October and has a 12-month trailing yield of 6.59%.

Management fees are 0.30% and distributions are made quarterly. Top holdings include Wesfarmers Ltd (ASX: WES) (10.62%), Westpac Banking Corp (ASX: WBC) (10.42%), Commonwealth Bank of Australia (ASX: CBA) (9.88%), Woodside Petroleum Limited (ASX: WPL) (9.84%), Rio Tinto Limited (ASX: RIO) (9.02%), and BHP Group Ltd (ASX: BHP) (8.94%). 

The SPDR S&P Global Dividend Fund (ASX: WDIV) seeks to track the performance of the S&P Global Dividend Aristocrats AUD Index. The fund made returns of 15.65% in the year to 31 October and had a dividend yield of 4.79%. 

Management fees are 0.5% and distributions are made twice yearly. The ETF held 99 stocks at 31 October. Holdings were spread across Canada (21.96%), United States (21.58%), United Kingdom (14.02%), France (7.29%), Japan (7.14%), and Switzerland (4.40%), amongst others. 

Top holdings include Hennes & Mauritz AB-B SHS (2.00%), AT&T Inc (1.66%), Klepierre (1.57%), IGM Financial Inc (1.54%), IG Group Holdings PLC (1.53%), and Compass Minerals International (1.50%). 

Foolish takeaway

Dividend-seeking investors have multiple options in the hunt for yield. ETFs are a convenient option for rapid diversification (both local and international). Investors can gain access to dozens of high-yielding shares in a single trade, opening the door to new investment opportunities. 

The post 2 ASX ETFs for dividend-seeking investors appeared first on The Motley Fool Australia.

Perhaps because of their relatively new presence on the investing scene, ETFs seem to be viewed with a little more suspicion by income-focused investors than say your classic ASX dividend powerhouses like Commonwealth Bank of Australia (ASX: CBA) or Sydney Airport Holdings Pty Ltd (ASX: SYD).

However, I think dividend-focused ETFs can be a valuable tool in any dividend portfolio. Instant diversification with baskets of dozens of dividend paying companies as well as some international exposure are just some of the benefits ETFs offer.

So here are 3 dividend-focused ETFs that might interest anyone with a bias toward share market income.

SPDR S&P Global Dividend Fund (ASX: WDIV)

This ETF follows dividend paying companies mostly outside Australia that have a track record of stable or increasing dividends over the past ten years. You are getting a mixed bag of companies here, from banks and real estate to consumer stapes and utilities. Our own AGL Energy Ltd (ASX: AGL) is in the mix, but some of WDIV's top holdings include AT&T, IG Group Holdings and Philip Morris International. This ETF is currently offering a 4.78% trailing dividend yield.

Vanguard Australian Property ETF (ASX: VAP)

A little closer to home, this ETF from Vanguard aims to track the largest Australian REITs (real estate investment trusts) on the ASX. Property has always been a lucrative source of investment income, and this ETF provides it through a listed stock investment. VAP holds companies like Goodman Group (ASX: GMG), Scentre Group (ASX: SCG) and Stockland Corporation Ltd (ASX: SGP). These REITs all own property assets like shopping centres, business parks and retirement villages and pass on their rental income as dividends. VAP is currently offering a trailing dividend yield of 4.36%.

iShares Consumer Staples ETF (ASX: IXI)

This ETF doesn't have a primary focus on dividends, but instead aims to track an index comprised of global consumer staples companies (most of which pay decent dividends anyway). These businesses make everyday essentials like food and household items – offering a base of defensive stocks that should be fairly recession-resistant. Some of IXI's top holdings include Proctor & Gamble, Nestle, Coca-Cola and Walmart. IXI is currently offering a 2.04% trailing yield.

Foolish takeaway

I think these 3 ETFs have a lot to offer any investor that has dividend income at the top of their investing priorities. Each ETF offers exposure to dozens of underlying companies (some from around the world), which helps reduce portfolio risk whilst maintaining a decent dividend output.

The post 3 top ETFs to buy for ASX dividend income appeared first on The Motley Fool Australia.

iShares S&P/ASX Dividend Opportunities ETF (ASX: IHD)

This ETF from BlackRock tracks an index comprised of 51 of the highest-yielding shares on the ASX. Why bother trying to sift through the big banks and resource companies looking for yield when you can just get one ETF that owns all of the best dividend payers the ASX has to offer?

What I like most about this fund is the automatic rebalancing nature of its operations. If a stock ceases to pay a dividend (take AMP Limited (ASX: AMP) for instance), it is automatically removed from the ETF without you having to do anything and replaced with a stock that does. Thus, there is little chance of you getting caught in a dividend trap. IHD charges a management fee of 0.4% and offers a trailing yield of 6.23%

SPDR S&P Global Dividend Fund (ASX: WDIV)

WDIV takes a similar strategy to IHD and applies it to companies around the world – thus you can get a slice of 99 global companies that all have a history of stable or increasing high dividends for 10 years or more, all in one ASX share. Although (as it invests in companies outside Australia) you don't get any franking credits with this ETF, it still offers a 4.8% yield on current prices, as well as valuable global exposure. The ASX only accounts for around 2% of the world's shares, so if you love income, it might pay to look outside our shores as well.

Some of WDIV's top holdings include Exxon Mobil, Japan Tobacco, AT&T and General Mills. This ETF charges a management fee of 0.5%.

Foolish takeaway

I think these 2 ETFs would have a very solid place within any dividend-focused ASX portfolio. You get instant diversification as well as automatic mechanisms that exclude underperforming companies. You could use either or both of these ETFs to build a strong foundation of income-producing assets, topped up with your favourite ASX dividend shares.

The post 2 ASX ETFs to buy for a high-income portfolio appeared first on The Motley Fool Australia.