If you're wanting to add some dividend shares to your portfolio this week, then I think the two listed below could be top options.
Here's why I think these dividend shares are in the buy zone:
Commonwealth Bank of Australia (ASX: CBA)
The first ASX dividend share to consider buying is Commonwealth Bank. It remains my favourite in the banking sector due to the quality of its operations, its strong management team, and robust balance sheet. In respect to the latter, when it released its full year results earlier this month, it revealed a CET1 ratio of 11.6%. This is comfortably ahead of APRA's 'unquestionably strong' benchmark of 10.5%.
Given the pandemic and the potential for APRA to place further restrictions on dividend payments in 2021, it is difficult to predict what dividend the bank will play next year. However, I would expect something in the region of $3.00 per share. Based on the Commonwealth Bank share price, this equates to a generous fully franked 4.3% yield.
Rural Funds Group (ASX: RFF)
Another dividend share to consider buying is Rural Funds. It is a leading agriculture-focused real estate company which owns a collection of high quality rural assets. These assets are leased to some of the biggest names in the industry such as Treasury Wine Estates Ltd (ASX: TWE).
I'm a big fan of Rural Funds because of its long leases and the periodic rental increases included in them. This gives the company great visibility on its future earnings and ultimately its distributions. In FY 2021 it intends to increase its distribution in line with its long term target of 4%. This will mean a distribution of 11.28 cents per share. Which based on the current Rural Funds share price, means a very attractive 5.15% yield.
