Once reliable S&P/ASX 200 Index (ASX: XJO) and All Ordinaries (ASX: XAO) dividend shares have come under fire, following uncertain earnings and challenging business conditions amidst the coronavirus pandemic. However, there are many dynamic businesses out there, surviving or even thriving in today's unprecedented economic conditions.
Here are 3 ASX dividend shares that you could add to your income portfolio.
1. Fortescue Metals Group Limited (ASX: FMG)
Fortescue is positioned front and centre to benefit from the strong iron ore spot price and weak Australian dollar. This follows mounting supply concerns for Brazil, one of China's biggest sources of iron ore. Brazil's confirmed coronavirus cases have soared to more than 300,000, second only to the US.
From a demand perspective, Chinese steel mills have been ramping up production since April. Exhausting iron ore inventories will place further pressure on the iron ore spot price. While the Fortescue share price might be near record all-time highs, the resilient iron ore spot price and China's commodity intensive recovery should see this continue. Fortescue currently pays a whopping 7.19% dividend yield, which may make it one of the most desirable and resilient ASX dividend shares to watch out for.
2. Money3 Corporation Limited (ASX: MNY)
Money3 provides automotive finance for the purchase and maintenance of vehicles. It estimates that approximately one in every 500 vehicles in Australia have a current Money3 loan. One in every 800 vehicles in New Zealand have a current Go Car Finance loan (the New Zealand-based auto loan company Money3 acquired in 2019).
In a recent conference presentation, the company provided unaudited financial results for YTD March 2020. It has so far seen a 44.4% increase in revenue and 43.6% increase in earnings before interest, tax, depreciation and amortisation (EBITDA) compared to the prior corresponding period.
Despite the damage that COVID-19 has inflicted on the Australian economy, Money3 has seen minimal impact on cash collections. It believes that government stimulus will have a positive impact on customers' ability to continue to make payments towards their loans. It confirmed that in its New Zealand market customers continued to seek loan pre-approval during lockdown, with digital signup and contactless delivery occurring.
The minimal impact that COVID-19 has had on Money3's cash flows and the expected rebound in the vehicle market could make the company a very strong ASX dividend share to own. Money3 currently pays a market-leading dividend yield of 5.97%.
3. People Infrastructure Ltd (ASX: PPE)
People Infrastructure operates in the workforce management sector, providing support to 3 main industries: health and community services, information technology, and general staffing/specialist services. The company raised $17.6 million in April to provide additional balance sheet support for the period that the business impacted by COVID-19. The funds are also marked for potential future acquisition opportunities as a result of the current volatile economic situation.
The company provided another update to the market in May. This highlighted an expected FY20 normalised EBITDA to be in the range of $24–25 million. This would represent an approximate 35% increase on FY19 figures. It also pointed to factors that may support or increase the company's 2020 performance. This includes continued demand for staff services across its divisions, in particular, an increase in demand for staffing in its general staffing business, a recovery in its information technology and nursing businesses. With potential tailwinds in mind, PPE also pays a 2.91% dividend yield.
