Despite the challenges faced by some S&P/ASX 200 Index (ASX: XJO) shares in being able to pay out full dividends this year to shareholders, I believe that high-yielding dividend shares are still by far the best way to secure a regular, strong investment stream.
In any case, companies that might be struggling to pay out out full dividends this year are generally limited to a few industries, such as financial services and travel and tourism.
If you were to look at an alternative such as keeping your money in high-interest savings accounts or term deposits, you will be barely beating inflation…
So with that in mind, here are 2 of my top high-yielding dividend share picks right now:
Wesfarmers Ltd (ASX: WES)
I am particularly attracted to Wesfarmers as we navigate through the coronavirus crisis due to its high level of diversification across a broad portfolio of assets. Wesfarmers has operations in general retail segments such as home improvement, general merchandise and office supplies, as well as other segments such as industrial.
Wesfarmers also can draw upon its excellent management team and has a long-term track record of performing relatively well during challenging financial times. The group also has a strong balance sheet, positioning it well to ride out the current crisis.
In a recent market update, Wesfarmers revealed that its retail businesses have made solid progress expanding and upgrading their online sales offerings to support a substantial increase in demand for online products. Initiatives that it has recently deployed include implementing a 'drive and collect' service at its Bunnings and Officeworks chain of stores nationwide.
Wesfarmers currently offers investors a very attractive grossed-up dividend yield of 6.01%.
Telstra Corporation Ltd (ASX: TLS)
In Telstra's first-half results for FY20, our leading telecommunications provider informed the market it was well on track to achieve the goals it had put in place as part of its T22 strategy. This strategy is designed to see the company evolve into a leaner, more efficient telco provider in a new era of Australian telecommunications that revolves around the National Broadband Network (NBN).
In addition, Telstra's broadband and mobile services are proving to be essential to both businesses and consumers throughout the coronavirus crisis.
I believe that Telstra is well-positioned to pay its scheduled dividend this year due to the continued strong demand for telecommunication services throughout the pandemic, the defensive nature of its revenues, and the fact that Telstra already cut its dividend at the beginning of 2019.
Telstra currently offers investors a grossed-up dividend yield of 7.64% if you include NBN special dividends.
