If you are looking to invest in dividend shares, then you're in luck. I believe there are a large number of quality options for investors to choose from right now.
Three ASX dividend shares that I would buy are listed below. Here's why I like them:
BHP Group Ltd (ASX: BHP)
I believe that BHP would be a great dividend share for income investors that are looking for exposure to the resources sector. I think the Big Australian is well-positioned to deliver strong free cash flows this year thanks to high iron ore prices. This has been driven by supply disruptions in Brazil and robust demand from Chinese steel makers. I estimate that the mining giant's shares currently provide investors with a forward fully franked 5% dividend yield.
BWP Trust (ASX: BWP)
Another ASX dividend share to consider buying is this real estate investment trust. BWP has a focus on warehouses, with most of them leased to hardware giant Bunnings. I believe Bunnings is a high quality tenant and unlikely to be leaving its properties any time soon. Especially given how the retailer is owned by Wesfarmers Ltd (ASX: WES), which is also a major BWP shareholder with a ~23.6% stake. At present I estimate that it offers investors a forward 5.1% yield.
Rural Funds Group (ASX: RFF)
Another ASX dividend share to consider is Rural Funds. It is a property company which owns a portfolio of agricultural assets across Australia. It generates its revenue from long-term leases across five sectors: almond and macadamia orchards, cattle assets, vineyards, and cotton assets. Pleasingly, the company has not been impacted by the pandemic and remains on course to increase its distribution to 11.28 cents per share next year. This equates to a very generous forward 5.5% distribution yield.
