Today is a good day to buy ASX dividend shares (not to die hard).
Why, you may ask?
Well, the stock market isn't having a good day. The S&P/ASX 200 (INDEXASX: XJO) is down a hefty 1.89% to 5,828 points (at the time of writing) after briefly spiking into the green this morning. That puts the total losses for this 'corona crash' at 19% – just before the dreaded 'bear market' declaration (defined as a 20% drop).
Now it's never fun seeing the value of the shares you own drop like this. Paper losses are technically theoretical (until you hit the sell button anyway), but the psychological impacts are very real.
But when share prices drop, a wonderful thing happens at the same time – we get offered higher starting dividend yields on our favourite ASX shares!
What yields are ASX blue-chip shares offering today?
Let's look at dividend stalwart Commonwealth Bank of Australia (ASX: CBA). CommBank was last month offering a yield of around 4.5% to new buyers. Today, this yield is 6.16% (plus the benefits of franking).
Woodside Petroleum Limited (ASX: WPL) has been hit hard by the collapse in oil prices in recent days, but this collapse has pushed Woodside's starting yield to 6.21% – up from around 4% just a month ago. Fellow resources stock BHP Group Ltd (ASX: BHP) looks even juicier today – it has a trailing yield of 7.49% on offer at current prices.
Worried about the ASX banks or resources shares as an investment in these uncertain times? Let's instead look at Transurban Group (ASX: TCL). Last month, buying Transurban shares would have gotten you a yield of 3.7%. Today, the same company with the same toll roads will net you a dividend yield of 4.3%.
Coles Group Ltd (ASX: COL) is another 'safer' ASX share to watch. Last month, you could expect a grossed-up yield of 4.77% on Coles shares. Today, it's offering 5.04%.
Foolish takeaway
If dividends are your game, you should be licking your lips at the opportunities the market is throwing our way today. Many companies have investors justifiably concerned about the current coronavirus situation. But this will likely leave many companies relatively no worse off – and in some cases, maybe even boost sales (like Coles' sales of toilet paper).
ASX dividend-paying shares are also a great way to smooth out your returns in volatile years. In many cases, dividends keep coming in through the door, even though your portfolio might be down on paper.
