ASX dividend shares are popular investments given their regular income stream and associated franking credits.
Here are 5 ASX dividend shares with 100% franking I’d look at buying today.
1. Commonwealth Bank of Australia (ASX: CBA)
Bank shares have historically been popular investments for ASX dividend shares investors.
A majority of earnings are paid out as dividends and their size afford them resilience when markets fall.
But why choose CBA over the other big banks?
Put simply, CBA does it better than the rest.
The bank earns higher returns on capital against its peers.
It’s also outpacing competitors in terms of market share and growth.
It’s been the number one ASX bank share for years, and there’s little to suggest that will change anytime soon.
2. ASX Ltd (ASX: ASX)
News today that the ASX would be delaying the deployment of its highly anticipated blockchain clearing system did not go down well with investors.
It’s the fourth time the local exchange has pushed back the new software upgrade.
Add in outages of futures and equities trading functions in the past 18 months and many would question why you’d go near the business as an ASX dividends share investment?
The simple answer is because it’s a monopoly.
Sure there is the Chi-X exchange.
But the ASX is the primary exchange for Australian companies.
Even when it slips up, there is little the regulator can do other than issue a fine and a please explain.
Arguably, it should be disrupted if it keeps making more unforced errors.
But any real competitor will be flagged years in advance.
3. Deterra Royalties Ltd (ASX: DRR)
Deterra is an ASX dividend share play on mining.
The business earns a royalty from BHP Group Ltd (ASX: BHP) for any iron ore mined at Mining Area C in the Pilbara.
It then pays out all of its profits in dividends.
But what makes Deterra a more attractive investment than investing directly in a miner is its risk profile.
It takes a clip of revenue, not profit. Subsequently, it’s not exposed as much on both an operational and commodity price basis.
The actual dividend will fluctuate, but its 100% payout ratio is attractive to ASX dividend investors.
4. Endeavour Group Ltd (ASX: EDV)
Endeavour group houses the Dan Murphy’s and BWS liquor chains. The business also owns a stable of hotels and pubs around Australia.
It’s a great reopening play, and its retail operations offer defensive earnings when the economy takes a dip (like when COVID-19 hit).
EDV is also the unofficial gatekeeper to emerging liquor brands.
Achieving national distribution requires getting Endeavour on board, giving the business significant buying power with suppliers.
5. Wesfarmers Ltd (ASX: WES)
This should be the ASX dividend share at the very bottom of your draw.
Owning shares in Wesfarmers is almost a rite of passage for ASX investors.
Its simple mission of earning a return above that of the market – which it has done for decades – through the cycle is what makes the conglomerate so revered.
Bunnings. Officeworks. Kmart. And now a pharmacy chain. This business is as defensive as it gets.