When I first started investing, this was the allocation I was told was the ratio to aim for in my investments. That’s a third in shares, a third in property and a third in cash. With interest rates at record lows, investors everywhere have been struggling to balance their portfolios using this traditional framework – cash is no longer offering any real returns whatsoever. Even term deposits and government bonds are inflation-matching at best these days – hardly qualifying as ‘investments’ at all.
The only real investments you can expect to receive an inflation-beating, cash-flowing yield are ASX dividend shares and some property assets these days. And since we deal mostly with shares here at the Fool, here are 2 that I think are looking attractive today.
Commonwealth Bank of Australia (ASX: CBA)
CommBank has found a new love amongst income investors this year – it remains the only ASX big four bank not to cut its fully-franked dividend in 2019. CBA shares today offer a starting yield of 5.42%, which is a vast improvement on what you could expect from a CommBank term deposit.
The outlook for our big banks does remain murky as we go into 2020. However, I think CBA’s phenomenal market power combined with its domination of the retail banking industry in Australia will ensure that this company remains a lucrative income stock for years to come.
Transurban Group (ASX: TCL)
Transurban has grown into one of the ASX’s favourite dividend stocks – and for good reason. This toll-road operator has managed to increase its stable of arterial roads and highways dramatically over the past decade or two. Most of the toll-roads in Sydney and Melbourne are now owned by Transurban – giving the company a monopolistic grip on the traffic flows of our cities.
With population increases and built-in toll rises in Transurban’s government contracts, I think this company is well-positioned to provide its shareholders with an ever-rising dividend income for a long time yet. TCL shares are offering a starting yield of 3.96% on today’s pricing.
I think these 2 ASX dividend shares are amongst the best available on the markets today and would serve any investor well. High quality income shares are hard to find, but I think CBA and Transurban are top-notch choices in our low interest rate world
The post 2 ASX dividend shares offering generous income today appeared first on Motley Fool Australia.
If you're hungry for dividend income, look no further than our new Top 3 Dividend Shares To Buy For 2020
When Edward Vesely -- our resident dividend expert -- has a stock tip, it can pay to listen. With huge winners like Dicker Data (up 147%) and Collins Food (up 105%) under his belt, Edward is building an enviable following amongst investors that are planning for retirement.
In a brand new report, Edward has just revealed what he believes are the 3 best dividend stocks for income-hungry investors to buy now. All 3 stocks are paying growing fully franked dividends giving you the opportunity to combine capital appreciation with attractive dividend yields.
Best of all, Edward’s “Top 3 Dividend Shares To Buy For 2020” report is totally free to all Motley Fool readers.
- Man bets $221,666 on one ASX stock
- Top analysts name their top 3 ASX blue chip shares for 2019
- 3 quality dividend shares to boost your income
- NEW: Free report names top 3 ASX dividend shares to buy for 2019
- 5 Stocks for Potentially Building Wealth After 50
Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Transurban Group. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2019