Are you looking for better interest rates than those on offer with savings accounts or term deposits? Good news! Despite the pandemic, the Australian share market is still home to a good number of shares offering generous dividends.
Three ASX dividend shares which I think are top options right now are listed below:
BWP Trust (ASX: BWP)
The first dividend share to consider buying is this real estate investment trust. It leases the majority of its portfolio to hardware giant Bunnings, which I feel is a fantastic tenant to have. The benefits of this were demonstrated yesterday when BWP revealed its estimated final distribution for FY 2020. The company intends to declare a 9.27 cents per unit distribution, which will bring its full year distribution to a total of 18.29 cents per unit. Based on its last close price, this equates to a 4.65% distribution yield.
Commonwealth Bank of Australia (ASX: CBA)
I think the pullback in the Commonwealth Bank share price this year has brought it down to an attractive level for a patient investment. Especially as I'm optimistic that the worst is now behind the banks after the Royal Commission, bushfires, and pandemic. This could even mean that a return to growth isn't too far away for the bank. For now, though, I expect Commonwealth Bank to cut its dividend down to approximately $3.70 per share in FY 2021. This equates to a fully franked forward 5.3% dividend yield.
Sydney Airport Holdings Pty Ltd (ASX: SYD)
Investors that are not in immediate need for dividends might want to consider Sydney Airport. I'm not overly convinced the airport operator will pay a final dividend this year, or if it does it will be significantly reduced. However, as long as Australia avoids a second wave of coronavirus, I believe the domestic tourism market will have recovered enough for Sydney Airport to pay a decent 29 cents per share dividend in FY 2021. If this proves accurate, it will mean a 5% dividend yield next year.
