The S&P/ASX 200 (INDEXASX: XJO) is close to all-time highs right now, as is the property market.
Meanwhile, interest rates, and thus the yields of government bonds, savings accounts and term deposits, are at record lows.
What does all this mean?
Well, it means that ASX dividend shares are the only place you can get a real, decent and inflation-beating yield on your cash these days.
But not all ASX dividend shares are priced equally in today's market. Some are downright expensive compared to their historical prices and yields. Not mentioning any names here, definitely not Woolworths Group Ltd (ASX: WOW)…
But here are 3 such shares that I think are reasonably cheap that would make a solid income buy today.
Australia and New Zealand Banking Group (ASX: ANZ)
ANZ is one of the smaller ASX banks, but at a market capitalisation of $74.7 billion, that's actually not too small at all. I still think ANZ is one of the better deals going in today's market.
On current prices, ANZ shares are offering a trailing dividend yield of 6.07%. Grossed-up at 70% franking, that equates to a yield of 7.93%. Since that's more than quadruple what you could expect from actually putting your cash in an ANZ account, I think ANZ is a top choice for income investors today.
Coles Group Ltd (ASX: COL)
Coles is a relatively new entrant to the ASX, but already is amassing a reputation as a solid income stock to buy. I like Coles as it's priced far more fairly (in my opinion) than its rival Woolworths, while still offering a decent dividend yield. I also like the company's policy of paying out 80–90% of its earnings as well as its plans for automation and tightening costs in its supply chains.
On current prices, I'm estimating Coles is offering a grossed-up forward dividend yield of 3.5%.
Telstra Corporation Ltd (ASX: TLS)
Telstra shares aren't as cheap as they were a few months ago, but I still think they offer generous income on today's prices. Sentiment surrounding this telco giant has improved markedly after the company appears to have put a floor under its dividend as well as invest heavily into a new 5G mobile network.
Even if this investment doesn't pay off for Telstra (which I think it will), the company's shares are today offering a grossed-up yield of 5.99% (which includes the special NBN dividends that the company consistently pays). That's not a bad deal at all if you ask me.
Foolish takeaway
Although the share market isn't rife with bargains at the moment, I think these 3 ASX dividend shares offer some of the best yields on cash you can get right now.
