2020 has been a year where paradigms have shifted, to borrow a phrase from Ray Dalio. Dividend shares like Sydney Airport Holdings Pty Ltd (ASX: SYD) and Ramsay Health Care Limited (ASX: RHC) that investors bought for income safety in 2019 have already cancelled some dividend payments in 2020.
The outlook is bleak for many other former dividend stalwarts like Commonwealth Bank of Australia (ASX: CBA) and Transurban Group (ASX: TCL)
So which dividend shares can be really counted on in 2020? Well, here are 3 that I have faith in to return a decent amount of cash to their investors this year
Woolworths Group Ltd (ASX: WOW)
Woolies has always had something of a reputation for safety, given its status as Australia's largest grocer. But this reputation has been boosted during the recent displays of customer enthusiasm (putting it lightly here) we have seen this year. At the end of the day, we all need food and the household essentials that Woolworths sells, and this in itself provides some protection for Woolworths as a dividend stock for years to come. On current prices, WOW shares are offering a grossed-up yield of 4.06%.
Washington H. Soul Pattinson & Co Ltd (ASX: SOL)
'Soul Patts' is one of the best dividend shares on the ASX in my opinion. It has paid a dividend every year since its listing in 1903 and has increased said dividend annually since 2000 (one of the only ASX companies with such a record).
Soul Patts isn't your typical business though. It mostly invests in other ASX shares like TPG Telecom Ltd (ASX: TPM) and Brickworks Limited (ASX: BKW) which form a highly diversified portfolio of top ASX companies from which Soul Patts draws its income. On current prices, SOL shares are offering a grossed-up yield of 4.86%.
WAM Global Ltd (ASX: WGB)
In contrast to Soul Patts, we have WAM Global, which was only founded in 2018. This listed investment company focuses on finding undervalued growth companies from all over the world, not just Australia. You might know some of its current holdings like Microsoft, PayPal, Nestle, and Costco.
WAM Global is currently offering a grossed-up yield of 3.97% and has enough profit reserves to afford its dividend payments for at least 2 years. WGB shares are also currently trading at a substantial discount to their net tangible asset value as well – making this another top investment for future dividend income in my view.
