If you’re looking for ASX dividend income shares, you might want to consider the three ASX blue chips below, including National Australia Bank Ltd. (ASX: NAB).
When looking at dividend shares, I like to look at bigger companies.
Investing in a blue chip as opposed to a small cap can provide extra stability and more safety to your investment. A large, established company is more likely to be able to continue paying high dividends when compared to a small company with possibly unstable or cyclical revenues.
So, what are some of the biggest dividend shares on the market right now?
Alumina Ltd (ASX: AWC)
Alumina engages in bauxite mining and alumina refining through a joint venture with Alcoa, known as Alcoa World Alumina and Chemicals (AWAC). Alumina owns 40% of the joint venture.
Alumina currently has a dividend yield of 12.18% after announcing a 105% increase to the interim dividend and a 52% increase to the final dividend in their 2018 full year earnings report.
With significant growth in NPAT and free cash flow, this company is looking like a good investment. Keep in mind though, this is a mining company so there is potential for revenue, and dividends, to fluctuate.
Bank of Queensland Ltd (ASX: BOQ)
BOQ is one of Australia’s leading ‘regional’ banks with more than 180 branches throughout Australia. Unlike many other banks, many of BOQ’s branches are run by their ‘owner-managers’, who are effectively small business owners.
Although BOQ will not be delivering half year results and interim dividend announcements until 11th April 2019, the current dividend yield is 8.23%.
BOQ has struggled over the past year but only the half-year report will show the full impact of the Royal Commission. Most bank shares were hit hard, but BOQ avoided drawing too much attention to itself throughout the Royal Commission, so with some luck they may find the share price rising if they can deliver a positive report. However, the housing market weakness is another important threat to profits.
National Australia Bank Ltd (ASX: NAB)
Another bank share with a high dividend yield is NAB. Unlike BOQ, NAB was front and centre for the Royal Commission which resulted in the resignation of their CEO and Chairman.
To see what NAB’s acting CEO had to say to shareholders, check out this article.
NAB has a lot of work to do in regaining the trust of their shareholders, but a 7.88% dividend yield might help. NAB currently has one of the highest dividend yields of the big four banks and with the share price well and truly down over the last year, it might be worth looking at as a long-term investment. But, will they keep their dividend this high? This article explores a dividend cut further.
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Disclaimer: At the time of writing, Max does not own shares in any of the companies mentioned.
