The coronavirus pandemic has sent shockwaves through the global economy leaving very few companies untouched.
This has been particularly bad for income investors, as many of the shares regarded as the safest on the market have been forced to cut, defer or even cancel their dividends.
The good news is that not all shares have done this and some appear well-positioned to continue paying their dividends as planned.
Here are three safe ASX dividend shares that I would buy today:
Coles Group Ltd (ASX: COL)
During the ongoing pandemic, this supermarket operator's defensive qualities have been on display for all to see. I believe this demonstrates why it would be a quality and safe option for income investors to consider buying right now. Another reason to invest is that its long term earnings and dividend outlook is very positive. This is due to its long track record of same store sales growth and focus on cost cutting. The latter will see Coles aim to deliver $1 billion in cumulative savings by FY 2023. I estimate that its shares currently offer a forward 3.9% dividend yield.
Rural Funds Group (ASX: RFF)
Another safe option to consider is Rural Funds. It is an agriculture-focused property group with a diverse portfolio of assets across a number of industries such as cattle, vineyards, and orchards. Given its long-term tenancy agreements and periodic rent increases, it has good visibility on its future earnings. This means that despite the pandemic, this month Rural Funds was able to reaffirm its guidance for both FY 2020 and FY 2021. It expects to pay a distribution of 10.85 cents per share in FY 2020 and then 11.28 cents per share in FY 2021. This equates to yields of 5.6% and 5.8%, respectively.
Telstra Corporation Ltd (ASX: TLS)
A final safe ASX share for income investors to consider buying is Telstra. Although times have been hard for the telco giant, I believe it is well-placed for a return to growth in the near future. This is due to its significant cost cutting plans, the near completion of the NBN rollout, the arrival of 5G internet, and rational competition. Overall, I believe it is in a position to continue paying a 16 cents per share dividend in FY 2020 and beyond. This equates to a fully franked 5.3% dividend yield.
