My top 3 ASX dividend shares to buy now // Motley Fool Australia

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I am always looking for good dividend stocks for my portfolio.

In Australia we have the unique benefit of postage credits, which increases the return on income for us as long-term investors. In most other countries, investors lose corporate income tax to the tax office permanently.

I am always looking for good dividend stocks for my portfolio.

In Australia we have the unique benefit of postage credits, which increases the return on income for us as long-term investors. In most other countries, investors lose corporate income tax to the tax office permanently.

With the ASX at record highs, it is difficult to find good value dividend stocks. Therefore, the three ASX shares below would be my dividend choices at this time:

PM Capital Global Opportunities Fund Ltd (ASX: PGF)

Concerns about postage credits still seem to be damaging the value of some listed investment companies (SCIs). PM Capital Global is a LIC that seeks investment opportunities worldwide. It is currently trading at a discount of 14% on the value of net tangible assets (NTA) as of January 10, 2020. When combined with the fact that PM Capital Global believes its holdings are undervalued, it is an attractive combination.

Being able to invest anywhere in the world provides great investment flexibility and should mean that the investment team can continue to look for good value opportunities.

It offers a diverse group of participations that include Visa, Bank of America, KKR & Co, Cairn Homes, MGM China Holdings and Freeport-McMoRan Copper.

The LIC has increased its dividend every year since it began paying a dividend in 2016. It has a cumulative gross dividend yield of 4.25%.

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

I think Soul Patts is the gold standard for dividend stocks in the ASX. It has been operating around 120 years and has paid a dividend every year at that time. In addition, it has increased its dividend every year since 2020.

How did you achieve this? It is an investment conglomerate that maintains large investments in a wide range of businesses, such as Brickworks Limited (ASX: BKW) TPG Telecom Ltd (ASX: TPM), Magellan Financial Group Ltd (ASX: MFG), Clover Corporation Limited (ASX: CLV) and Technology Investments Ltd dancer (ASX: BTI).

It does everything the right way. It does not issue shares for acquisitions, has a very solid balance, invests in the long term and tries to choose uncorrelated assets. That is why he has recently invested in swimming and luxury retirement life schools.

Soul Patts currently has a gross dividend yield of 3.7%.

WAM Microcap Limited (ASX: WMI)

Small capitalization actions have proven to be an excellent hunting ground to find some of the best performing stocks. WAM Microcap is another LIC and has had an extremely strong performance since the beginning two and a half years ago, with its portfolio delivering stupid yields of more than 20% per year.

It is important that WAM Microcap does not grow too much to be able to continue investing effectively in small capitalization shares. That is why he is paying an ordinary dividend in constant growth and is also paying special dividends as well. It is paying a good cash flow to investors.

As for ordinary dividends, WAM Microcap has a cumulative gross dividend yield of 4.3%.

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Each of these dividend shares could beat the market and generate excellent dividends in the coming years. I would probably choose them to list them, with PM Capital being my favorite for now due to the great discount of the stock price compared to the assets.

However, I am also excited about the future of these leading dividend shares for increasing income.

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Tristan Harrison owns shares of PM Capital Global Opportunities Fund Ltd, WAM MICRO FPO and Washington H. Soul Pattinson and Company Limited. Motley Fool Australia’s parent company, Motley Fool Holdings Inc., owns shares of Clover Limited. Motley Fool Australia owns shares and has recommended Washington H. Soul Pattinson and Company Limited. Motley Fool Australia has recommended Brickworks. It is possible that not all fools have the same opinions, but we all believe that considering a wide range of ideas makes us better investors. The Motley Fool has a disclosure policy. This article contains only general investment advice (under AFSL 400691). Authorized by Scott Phillips.

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