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5 top ASX 20 dividend shares to put on your list

Kate O'Brien
Dividend

The ASX 20 is the largest 20 companies listed on the ASX by market capitalisation – if you’re looking for dividends, you could do a lot worse than consider some of the names on this list.

We take a look at 5 top ASX 20 dividend shares.

Commonwealth Bank of Australia (ASX: CBA)

The only major bank not to cut its dividends or franking credits last year, CBA paid $4.31 in dividends in 2019, fully franked. CBA is looking the most expensive of the big four banks, with a dividend yield of 5.31% and a price-to-earnings (P/E) ratio of 17.74. Like all Australian banks, CBA is facing continued regulatory headwinds, but could be bolstered by macro level economic improvements. 

Westpac Banking Corp (ASX: WBC)

Currently the highest yielding of the big four banks, Westpac paid $1.74 in dividends in 2019, fully franked. Westpac is trading on a dividend yield of over 7% and a P/E ratio of 13. Westpac’s share price crashed last year when the AUSTRAC scandal broke and has yet to recover. 

BHP Group Ltd (ASX: BHP)

BHP paid impressive dividends in 2019, boosted by strong iron ore prices. Full year dividends of 191.7 cents per share were paid, fully franked, plus a special dividend of 141.27 cents per share paid last January. BHP is trading on a dividend yield of 4.85% and a P/E ratio of 14.20. BHP has increased its dividend every year since 2010 with the exception of 2016 when the miner axed its progressive dividend policy. 

Rio Tinto Limited (ASX: RIO)

Rio’s dividends and share price were also boosted by the strength in iron ore prices in 2019. The miner paid dividends of $307.58 cents per share in 2019, fully franked. Rio is trading on a dividend yield of 4.62% and a P/E ratio of 11.64. Like BHP, Rio, has increased its dividend every year since 2010 (other than 2016). 

Wesfarmers Ltd (ASX: WES)

Wesfarmers reported increased profits from continuing operations in FY19, with higher contributions from Bunnings and Officeworks. Total fully franked dividends of $2.78 per share were paid in 2019, including a special dividend of $1 paid in April. Wesfarmers is trading on a dividend yield of 4.13% and a P/E ratio of 25.13. 

Foolish takeaway

Dividends are one of the great benefits of investing in ASX shares, and companies that pay reliable dividends are often large businesses in mature industries like these ASX 20 shares. 

The post 5 top ASX 20 dividend shares to put on your list appeared first on Motley Fool Australia.

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Motley Fool contributor Kate O'Brien has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Wesfarmers 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