If you're looking for a reliable source of income in these uncertain times, then I think the ASX dividend shares listed below would be great options.
Both look well-positioned to continue paying their dividends as normal over the coming years despite the pandemic. Here's why I think they are among the best on offer on the ASX right now:
BWP Trust (ASX: BWP)
The first reliable dividend share to buy is BWP. It is a real estate investment trust (REIT) that invests in and manages commercial assets which are predominantly leased to home improvement giant, Bunnings Warehouse.
Given the strength of the Bunnings business and the fact that the retail giant is owned by major BWP shareholder Wesfarmers Ltd (ASX: WES), I believe the REIT is well-positioned to grow its income and distribution at a consistent rate over the next decade. Based on the current BWP share price, I estimate that it offers investors a forward 4.4% yield.
Rural Funds Group (ASX: RFF)
Rural Funds is an agriculture-focused property company which aims to grow its distribution by 4% per annum over the long term. The good news is that I believe it is well positioned to deliver on this thanks to its high quality portfolio of assets and its ultra long tenancy agreements.
In respect to the latter, at the end of FY 2020 the company's weighted average lease expiry stood at almost 11 years. What's even better is that these leases contain fixed rental increases. Barring some extraordinary events, this almost guarantees a growing and reliable rental income stream over the next decade. In FY 2021, management intends to increase its distribution by 4% to 11.28 cents per share. Based on the latest Rural Funds share price, this equates to a 5% yield.
