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3 defensive dividend shares for income-hungry investors

Sebastian Bowen
safe dividends

By now, everyone would be aware of the lack of things you can do with your money to earn a real return on your capital. With interest rates at record lows, and property prices approaching record highs (again), it has become a difficult environment to invest in with certainty.

But I still think that ASX dividend-paying shares are the best way to seek yield in this current environment. Here are 3 ASX dividend shares that investors hungry for yield should consider for their portfolios

Transurban Group (ASX: TCL)

Transurban is a company that owns and operates toll-roads (which everyone living in Sydney or Melbourne would be well familiar with). It’s for this reason I think Transurban makes a fantastic dividend share to consider – toll-roads are a very defensive asset that millions of drivers a year are forced to use.

Transurban pays a (fairly rock-solid) 3.97% dividend on current prices, which is why I think income investors should consider this stock today.

APA Group (ASX: APA)

APA owns the largest natural gas pipeline network in the country, which covers almost the entirety of the Australian east coast. Again, I can’t envisage any economic situation where APA’s network would not be in full use – most of us either use gas for cooking, heating or hot water, after all.

For this reason, I think APA’s current dividend of 4.17% is another solid bet for anyone seeking reliable share market income today.

Sydney Airport Holdings Pty Ltd (ASX: SYD)

I was recently at Sydney Airport myself and was (painfully) reminded of the earnings power of this business when I rented a car spot for an hour (and paid through the nose to do so).

Having a vital piece of Australian infrastructure is one of the reasons why I think Sydney Airport is a fantastic defensive asset to have in your portfolio. Almost anyone who wants to visit NSW from overseas has to come through Sydney Airport’s gates, giving it a virtual monopoly on NSW’s airways. Investors will also find a lot to like with SYD’s current 4.38% dividend, which I also consider fairly safe considering the characteristics of this business.

Foolish takeaway

I think these 3 ASX dividend shares offer some of the safest yields in today’s market. All of these businesses have highly defensive traits that I think make them well positioned to ride out any kind of economic storm – which will help you sleep a little better at night!

The post 3 defensive dividend shares for income-hungry investors 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 and 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