If you're looking to add some income options to your portfolio, then the three ASX dividend shares listed below could be top options.
I believe each of these shares will be able to continue paying dividends despite the coronavirus pandemic.
Here's why I think these shares would be great options for income investors:
Telstra Corporation Ltd (ASX: TLS)
The first dividend share for income investors to consider buying is Telstra. I believe the telco giant is well-placed for a return to growth in the coming years. This is thanks to its significant cost cutting plans, the near completion of the NBN rollout, the arrival of 5G internet, and improving trading conditions. In the meantime, based on its recently reiterated free cash flow guidance, I'm optimistic that it will maintain its 16 cents per share in FY 2020. This equates to a fully franked 5.2% dividend yield.
Vanguard Australian Shares High Yield ETF (ASX: VHY)
Another option for income investors to consider buying is the Vanguard Australian Shares High Yield ETF. I think this exchange traded fund is a great option for investors that don't have enough funds to adequately diversify their portfolio. This is because it provides investors with exposure to many of the highest yielding blue chip shares on the ASX through a single investment. At present I estimate that its units offer a forward dividend yield of at least 5%.
Wesfarmers Ltd (ASX: WES)
A final dividend share to consider buying is Wesfarmers. I like the conglomerate due to its high quality portfolio and solid growth prospects. In addition to this, the company is cashed up and very likely to be making deals in the next 12 months. These could provide a boost to its earnings and support the growth of the core business. In the near term, I believe Wesfarmers is well-positioned to deliver a solid FY 2020 result thanks to its Bunnings business. It has been experiencing very strong demand for home improvement goods during the pandemic. Based on this, I estimate that its shares offer a forward fully franked ~4% dividend yield.
