If you're planning to buy some dividend shares this week, then you might want to consider the ones listed below.
I think these ASX dividend shares are top option for income investors right now. Here's why:
Australia and New Zealand Banking GrpLtd (ASX: ANZ)
Rather than put money into its savings accounts or term deposits, I think investors would be better off buying this banking giant's shares. At approximately 0.9x estimated FY 2021 book value, I think ANZ's shares could be great value after their sizeable pullback this year.
And while the bank will almost certainly have to cut its dividend further in FY 2021, I believe the recent share price weakness means that it will still provide investors with an above-average yield. I currently expect ANZ to pay its shareholders a partially franked dividend of $1.05 per share in FY 2021. Based on the latest ANZ share price, this will provide investors with a very attractive forward 5.7% yield.
Wesfarmers Ltd (ASX: WES)
Another ASX dividend share to consider buying is this conglomerate. I think Wesfarmers is a great option due to its positive long term outlook thanks to its collection of quality brands. These brands include the likes of Bunnings, Kmart, Target, ecommerce company Catch Group, and a collection of industrial businesses.
In addition to this, the company is sitting on a sizeable cash balance and looks very likely to put it to work with value accretive acquisitions in the near term. If these potential acquisitions are a success, it could give its growth an additional boost. I estimate that the company will be paying its shareholders a dividend of approximately $1.46 per share in FY 2021. Based on the current Wesfarmers share price, this equates to a fully franked 3.15% dividend yield.
