33-33-33.
When I first started investing, this was the allocation I was told was the ratio to aim for in my investments. That's a third in shares, a third in property and a third in cash. With interest rates at record lows, investors everywhere have been struggling to balance their portfolios using this traditional framework – cash is no longer offering any real returns whatsoever. Even term deposits and government bonds are inflation-matching at best these days – hardly qualifying as 'investments' at all.
The only real investments you can expect to receive an inflation-beating, cash-flowing yield are ASX dividend shares and some property assets these days. And since we deal mostly with shares here at the Fool, here are 2 that I think are looking attractive today.
Commonwealth Bank of Australia (ASX: CBA)
CommBank has found a new love amongst income investors this year – it remains the only ASX big four bank not to cut its fully-franked dividend in 2019. CBA shares today offer a starting yield of 5.42%, which is a vast improvement on what you could expect from a CommBank term deposit.
The outlook for our big banks does remain murky as we go into 2020. However, I think CBA's phenomenal market power combined with its domination of the retail banking industry in Australia will ensure that this company remains a lucrative income stock for years to come.
Transurban Group (ASX: TCL)
Transurban has grown into one of the ASX's favourite dividend stocks – and for good reason. This toll-road operator has managed to increase its stable of arterial roads and highways dramatically over the past decade or two. Most of the toll-roads in Sydney and Melbourne are now owned by Transurban – giving the company a monopolistic grip on the traffic flows of our cities.
With population increases and built-in toll rises in Transurban's government contracts, I think this company is well-positioned to provide its shareholders with an ever-rising dividend income for a long time yet. TCL shares are offering a starting yield of 3.96% on today's pricing.
Foolish takeaway
I think these 2 ASX dividend shares are amongst the best available on the markets today and would serve any investor well. High quality income shares are hard to find, but I think CBA and Transurban are top-notch choices in our low interest rate world
