Dividends have become something of a scarce commodity on the ASX these days. Many formerly 'reliable' ASX shares have deferred or cancelled their dividend payments in 2020 – and we're only in May! We may well see many more ASX companies follow suit before the year is out.
So with that in mind, here are 3 ASX shares I would buy for my dividend income throughout the rest of 2020 and beyond!
BHP Group Ltd (ASX: BHP)
BHP has long been a solid dividend payer for ASX income investors, but I think this mining giant will be especially useful as we navigate through 2020. That's because BHP will likely be fairly cashed-up and ready to reward their shareholders, unlike most ASX companies.
BHP's largest operations are iron ore mines. Iron ore is a commodity whose price has held up remarkably well in 2020 and at the time of writing, is still over US$90 a tonne. These high prices should be enough to keep BHP's dividend spigots open and the cash flowing in 2020 and beyond.
WAM Research Limited (ASX: WAX)
WAM Research is one of my favourite ASX dividend shares. It's a listed investment company (LIC) that invests in small to mid-cap ASX shares that it perceives as undervalued. It uses the profits from these investments to fund its generous dividend. On current prices, WAM Research shares are carrying a trailing dividend of 7.6%, or 10.86% grossed-up.
Even though the company's share price usually trades at a healthy premium to its underlying value, this yield will make it worthwhile for many income investors out there!
AGL Energy Limited (ASX: AGL)
AGL is an energy giant with significant electricity generation and transmission assets across the country as well as a gas distribution network. It's one of the largest power companies in Australia.
Utilities like AGL are highly defensive (we need electricity all the time, after all) and thus, can provide a high and relatively 'safe' dividend stream (if there is such a thing). On current prices, AGL shares are offering a trailing dividend yield of 6.8%, partially franked.
Yes, AGL might be hit in the short-term by people deferring bill payments and other hardships related to the coronavirus shutdowns but, still, I think this company would be a solid ASX dividend share to have in 2020 and beyond.
