The final third of my 15 ASX share starter portfolio is allocated to dividend shares. Historically, ASX dividend shares have been strong performers as a group. Furthermore, a significant portion of the S&P/ASX 200 Index (ASX: XJO) return is made up of dividends and franking credits.
Here are 5 great ASX dividend shares that pay solid yields:
Jumbo Interactive Ltd (ASX: JIN)
Jumbo recently signed an extension to its resale agreement with gambling giant Tabcorp until 2030. This provides the online lottery ticket seller with strong visibility in the medium term. A growing lottery-as-a-service business also provides the stock with great optionality. Jumbo currently pays a 2.6% dividend yield, or 3.7% grossed up for franking credits.
Macquarie Group Ltd (ASX: MQG)
Macquarie is the only bank that I would buy on the ASX. Why? Because the "millionaire maker" doesn't just apply to the bank's rich clients, but also to investors. Macquarie has more international exposure, as well as an investment banking arm which provides greater optionality than the other major banks. It currently pays a partially franked 3.4% dividend yield.
Rural Funds Group (ASX: RFF)
Rural Funds must be one of the most stable businesses on the ASX. The business owns and leases agricultural properties to strong tenants such as Treasury Wine Estates Ltd (ASX: TWE). A benefit of dealing in a required field like agriculture, is that Rural Funds can implement long-term contracts, with inbuilt growth. Rural Funds currently yields a generous 4.76%.
Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)
Soul Patts is a Fool favourite. The diversified investment house has been a great ASX dividend share for long-term investment. Soul Patts has never failed to pay a dividend to shareholders since listing on the ASX. What's more, this dividend has increased every year since 2000. Soul Patts currently pays a 2.77% dividend yield, or 3.95% grossed up for franking credits.
Wesfarmers Ltd (ASX: WES)
Wesfarmers is another mature and diversified business with a long track record of success. Wesfarmers has done so well by effectively allocating capital over long periods of time. A great example of this is its investment and sale of the Coles Group. With a significant amount of cash from that sale, I expect some exciting announcements in the future. In the meantime, Wesfarmers has a number of strong brands like Bunnings and Kmart that allow it to pay a 3.13% dividend yield, or 4.47% grossed up for franking credits.
