Receiving ASX dividend income is one of the great underappreciated joys of investing in the share market. Getting paid just to hold shares is one of the greatest forms of passive income – and one that can also boost your long-term returns if the money is dutifully reinvested.
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.
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 Motley Fool Australia.
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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Sydney Airport Holdings Limited. 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. 2020