There are a few really good ASX dividend shares available to Aussie investors in my opinion.
I’m not attracted to some of the typical income names like Westpac Banking Corp (ASX: WBC), Sydney Airport Holdings Pty Ltd (ASX: SYD) or Transurban Group (ASX: TCL). All of those names cut their dividends in 2020, which may have been just when an investor had been relying on the income being paid to get through the uncertain COVID-19 times.
I like the following ideas:
Brickworks Limited (ASX: BKW)
Brickworks is a business with a fantastic record of dividend reliability, it hasn’t cut its dividend since 1976.
The business has a number of high quality of Australian building product companies like Austral Bricks, Austral Masonry, Austral Precast and Bristle Roofing.
Thankfully, the Australian construction industry is going through a bit of a recovery in FY21.
But the most important thing for the dividend is Brickworks’ defensive assets. It owns half of a high quality industrial property trust which keeps completing projects, increasing the property portfolio size and growing the rental profit distribution (as well as the value of the trust) for Brickworks.
Brickworks also has a large chunk of Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) shares, it owns just over 39% of the investment house which keeps sending higher dividends to Brickworks.
At the last closing price, Brickworks has a fully franked dividend yield of 3%.
MFF Capital Investments Ltd (ASX: MFF)
This business is a listed investment company (LIC) which is run by the highly regarded investor, Chris Mackay.
It targets global investments. It looks for shares that have good growth prospects but are also priced attractively.
MFF Capital has been invested in payment giants Visa and Mastercard for a long time and they make up around a third of the portfolio. They have also been strong performers over the last decade.
MFF pays its dividend from the investment returns, which have been strong over the years.
The board intend to increase the 6-monthly dividend to 5 cents per share in the next couple years. That equates to a fully franked yield of 3.9% for MFF in the not too distant future.
Magellan Financial Group Ltd (ASX: MFG)
Magellan is a quality funds management business in my opinion. It tries to run a portfolio mixed with both defensive and growth assets to provide lower volatility for investors.
The funds management part of the business is what pays for the large and growing dividend to shareholders. It aims to pay out at least 90% of the underlying funds management profit as a dividend each year.
The latest result, the FY21 half-year result, saw a 5% increase to the interim dividend.
That brought the dividend to 219.1 cents per share on an annualised basis. It translates to a partially franked dividend yield of 4.5%.