If you're on the lookout for quality fully franked dividends, then you might want to take a look at the two listed below.
Both these ASX dividend shares offer attractive fully franked dividends and appear well-positioned to grow them over the next decade. Here's why I like them:
Coles Group Ltd (ASX: COL)
I think that Coles is a great dividend share to own right now. I'm a big fan of the company due to its defensive qualities and strong market position. The combination of the two means Coles is well-placed for growth whatever the economy throws at it. This certainly was the case in FY 2020. At a time when most other companies across the country saw their profits decline because of the pandemic, Coles delivered strong growth. It reported a 6.9% increase in sales to $37.4 billion and a 7.1% lift in net profit after tax to $951 million in FY 2020.
Pleasingly, the company has started FY 2021 strongly and looks well placed to deliver another solid profit result in FY 2021. I expect this to lead to Coles rewarding its shareholders with another dividend increase next year. Based on the current Coles share price, I estimate that it offers a fully franked 3.2% dividend yield in FY 2021.
Dicker Data Ltd (ASX: DDR)
Another fully franked ASX dividend share to buy is Dicker Data. It is a leading wholesale distributor of computer hardware and software in the ANZ region. As with Coles, Dicker Data has been able to continue its growth throughout the pandemic. This has been driven by a combination of strong demand, new vendor agreements, and favourable industry tailwinds.
So much so, the Dicker Data board revealed that it intends to increase its dividend by around a third to 35.5 cents per share this year. Based on the current Dicker Data share price, this represents a very generous 4.5% fully franked dividend yield.
