The month after reporting season in August can be a great time to choose which companies to invest in. Trawling through half-year and full-year reports will give you a good financial snapshot of the company you may be looking to buy in.
As Warren Buffett once said, "It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price."
Here are my top 2 dividend shares that I would be happy to pick up today.
Dicker Data Ltd (ASX: DDR)
This leading Australian wholesale and distributor of computer hardware and software has been a great option for investors looking for frequent and reliable dividends.
The company has defied market conditions and soared during COVID-19 thanks to the ongoing demand for its products and services. Since March, the Dicker Data share price has jumped from $3.90 to $7.36 at the time of writing. That's a return of 88% in the last 6 months, not including the quarterly dividend the company pays.
For the past 12 months, Dicker Data has paid out 38 cents for every 1 share held to its investors. That represents a fully-franked 5.1% dividend yield.
The company has been growing its vendor agreements while at the same time diversifying its revenue by reducing the reliance on its tier 1 clients. Last month, Dicker Data booked more than $1 billion in revenue, a record for the wholesale and distributor business.
To support further growth, the company's new distribution centre is expected to be completed at the end of the year. The warehouse space will increase 80% to 23,500 sq metres in the first stage, with an additional 20,000 sq meters approved in a second stage.
I think that Dicker Data is a great dividend share to add to your portfolio.
Fortescue Metals Group Limited (ASX: FMG)
As one of the world's largest iron ore producers, the Fortescue share price has skyrocketed in recent times. In 2016, Fortescue hit a multi-year low of $1.62 amid an oversupply of iron ore that dragged market prices down.
Today, the Fortescue share price is fetching $17.53, at the time of writing. This year alone, Fortescue rewarded shareholders with dividends of $1.76. That's a 108% pay-out of an initial investment in just 12 months had you invested 4 years ago.
Of course, the record share price and dividends handed to investors come on the back of the rising spot price of iron ore. However, the company has made inroads in amplifying its profit through cost cutting measures and debt reduction.
I believe that the iron ore mine still has a lot of runway left. The company boasts the worlds' lowest cost position on extracting and refining iron ore, and has invested in its expansion plans on the Eliwana Mine and Rail project, and Iron Bridge Magnetite project.
Thus, with a dividend yield of 11.1%, the Fortescue share price is a solid buy for investors seeking shareholder value and dividend growth.
