With low interest rates here to stay for some time to come, I believe the share market remains the best place to earn a passive income.
But which dividend shares should you buy? Three ASX dividend shares that I think would be great options are listed below:
BWP Trust (ASX: BWP)
BWP is a real estate investment trust which I believe is well-positioned to the continue its positive form during the pandemic and beyond it. This is because BWP's warehouses are predominantly leased to home improvement giant, Bunnings Warehouse. I believe this is a fantastic tenant to have, especially given the way Bunnings continues to grow its sales during the crisis. I believe this means the risk of store closures and rental defaults is extremely low and periodic rental increases remain possible. At present I estimate that its units offer a 4.6% FY 2021 yield.
National Storage REIT (ASX: NSR)
I think this storage giant could be a good option for income investors. Although it is inevitable that National Storage will be impacted by the pandemic, I don't believe this impact will be as negative as some of its real estate peers. This should allow it to continue paying a decent distribution during the crisis and then return to growing it modestly each year once things return to normal. Based on the current National Storage share price, I estimate that it offers a 4.4% FY 2021 distribution yield.
Rural Funds Group (ASX: RFF)
A final ASX dividend share to consider buying is Rural Funds. I think the agriculture-focused property trust is is one of the best income options. This is due to the quality and diversity of its assets and its very positive long term growth outlook. I believe Rural Funds strong portfolio puts it in a position to continue growing its distribution during the pandemic and beyond. In FY 2021 it expects to pay shareholders a 11.28 cents per share distribution. Based on the latest Rural Funds share price, this equates to a 5% yield.
