Whether contemplating retirement or trying to manage the impacts of rising costs on the household budget, most Aussies would welcome some additional income. And most of us would also love to be able to generate this income without having to work extra hours or sacrifice time spent with family and friends.
But despite surging inflation, even savers with cash to invest in term deposits right now can struggle to find a bank willing to pay more than around 3% in interest, especially over the long term. For this reason (and lots of others!), many investors choose to buy ASX dividend shares.
Aussie investors love dividend shares for their potential to deliver a reliable income stream that's often far superior to what can be earned in savings accounts. And don't forget the potential franking credits!
So, we asked our Foolish contributors which ASX dividend shares they reckon offer top buying in November for passive income in the future. Here's what the team came up with:
8 best ASX dividend shares for November 2022 (smallest to largest)
Dusk Group Ltd (ASX: DSK), $124.54 million
CSR Limited (ASX: CSR), $2.17 billion
Premier Investments Limited (ASX: PMV), $4.06 billion
Whitehaven Coal Ltd (ASX: WHC), $7.47 billion
Allkem Ltd (ASX: AKE), $10.32 billion
Coles Group Ltd (ASX: COL), $22.71 billion
Macquarie Group Ltd (ASX: MQG), $70.10 billion
National Australia Bank Ltd (ASX: NAB), $98.87 billion
(Market capitalisations as at market close on 11 November 2022)
Why our Foolish writers love these ASX dividend shares
Dusk Group Ltd
What it does: Dusk is an ASX retail share. The company is a purveyor of candles, fragrances and other homewares.
By Sebastian Bowen: Dusk was one of the ASX retail shares that managed to survive and thrive during the COVID-induced lockdowns over the past two years. It has, however, suffered a significant share price fall in recent months, but I believe Dusk is navigating the post-COVID era with aplomb.
Its latest annual results showed the company sharply increasing its online sales. On recent pricing, Dusk has a trailing, fully-franked, dividend yield of more than 10%, which I believe is well worth considering for income investors this November.
Motley Fool contributor Sebastian Bowen owns shares in Dusk Group Ltd.
CSR Limited
What it does: CSR operates across three distinct and diversified business segments: building products, property, and aluminium production. The lion's share of the company is constructed around the various building materials it manufactures. These products range from plasterboard to insulation and more.
By Mitchell Lawler: When investing, I look for companies that display evidence of good management, a great balance sheet, and an attractive valuation. Throw in six decades of experience operating as an ASX-listed business, and you might just be staring down the barrel of a potential serial compounder.
CSR could be considered a boring business by many. However, boring can be beautiful – as it can oftentimes mean the company is an overlooked hidden gem. In my opinion, this long-standing building materials maker is undervalued at a 10.08 times price-to-earnings (P/E) ratio, compared to a nearly 14 times industry average.
Housing supply is becoming a topical issue, with the Federal Government aiming for 1 million new homes by 2030. This combined with increased energy efficiency requirements as part of the National Construction Code (NCC), and I think CSR has a recipe for consistent growth.
The company is offering a succulent 7.6% dividend yield right now based on current pricing.
Motley Fool contributor Mitchell Lawler owns shares in CSR Limited.
Premier Investments Limited
What it does: Premier Investments is the parent business behind a number of popular retail brands, including Just Jeans, Jay Jays, Peter Alexander and Smiggle. The company also has substantial holdings of Breville Group Ltd (ASX: BRG) and Myer Holdings Ltd (ASX: MYR) shares.
By Tristan Harrison: I think the last two and a half years have shown the quality of this business, with impressive profit growth. In FY22, net profit grew by 4.9% on FY21 and 167% compared to FY19.
In the first 12 weeks of FY23, total global sales were up 42.8%, albeit partly due to last year being impacted by COVID-related store closures.
In the coming years, I think Premier Investments can continue growing its online sales, which are more profitable than its in-store sales, helping boost overall profitability. And according to Commsec, the company is expected to pay a grossed-up dividend yield of 5.8% in FY23, based on a potential $1.03 per share annual payout.
The Premier Investments share price is down around 16% this year, making it appear good value to me.
Motley Fool contributor Tristan Harrison does not own shares in Premier Investments Limited.
Whitehaven Coal Ltd
What it does: Whitehaven is a major coal producer in Australia with mining operations in New South Wales and Queensland.
By Matthew Farley: Whitehaven boasts a current full-year dividend of 48 cents per share (cps), thus giving it a trailing dividend yield of 6.0% at the time of writing.
I'm bullish on this company due to the world's continued reliance on coal as a source of energy, underlined by the European energy crisis, as well as China's inevitable reopening once it finally gets COVID-19 under control. I believe these tailwinds should help keep Whitehaven's earnings and dividend payments looking pretty healthy.
This is further supported by Goldman Sachs, which recently forecast Whitehaven's dividend to reach 84 cps for FY2023, with a consensus estimate of 120 cents. So, I believe dividend investors have good reason to be excited about Whitehaven shares right now.
Motley Fool contributor Matthew Farley does not own shares in Whitehaven Coal Ltd.
Allkem Ltd
What it does: Allkem is a speciality lithium products company with a global portfolio of diverse and high-quality lithium chemicals.
By James Mickleboro: My pick this month has never actually paid a dividend. However, that is expected to change in FY2023, with the market predicting an inaugural dividend payment. And it certainly will have been worth the wait!
Thanks to the mountains of cash that Allkem is generating from sky-high lithium prices, the team at Bell Potter is expecting a 94.8 cps dividend this financial year. And with prices expected to remain strong and management aiming to grow production 3x by 2026, even bigger dividends of 255.1 cps are forecast in both FY2024 and FY2025.
Based on the Allkem share price of $16.18 at the close of trade on Friday, this will mean yields of around 5.9% and 15.8%, respectively.
Motley Fool contributor James Mickleboro owns shares in Allkem Ltd.
Coles Group Ltd
What it does: Coles operates one of Australia's largest supermarket and liquor retailing networks. It opened its first store in 1914 and now boasts more than 2,500 retail outlets nationwide.
By Brooke Cooper: The Coles share price has struggled alongside the broader S&P/ASX 200 Index (ASX: XJO) in 2022, falling by around 5% year to date.
That's despite the company's after-tax profits lifting 4% over the 2022 financial year to around $1 billion.
The business is also relatively well protected from inflation. Indeed, it expects inflationary impacts will drive more value-seeking customers through its doors.
Broker Morgans agrees, saying Coles' strong balance sheet and defensive characteristics should help it navigate a weakening economic environment. It tips the Coles share price to lift around 15% to $19.50 amid rising dividends.
Coles currently trades with a 3.7% dividend yield, having paid out 63 cps last financial year.
Motley Fool contributor Brooke Cooper does not own shares in Coles Group Ltd.
Macquarie Group Ltd
What it does: Macquarie is one of the largest companies trading on the ASX 200 and Australia's fifth-largest bank by market capitalisation. It is primarily involved in investment and commercial banking, as well as asset management, with $795 billion in funds under management today.
By Bronwyn Allen: There are high-quality ASX shares I haven't invested in over the years because their prices were just too high to deliver a decent dividend yield. One of those was Macquarie, but this year's market correction changed that for me.
In the year to date, the Macquarie share price is down by around 13% to $179.30 at Friday's market close, with a trailing dividend yield of 3.5%. That's much more attractive than where it has been in the recent past. This time last year, the Macquarie dividend yield was sitting at 3%. Two years ago, it was at 2.25%.
ASX growth shares often demand that investors forgo a decent dividend in exchange for better capital gains. But today, I think Macquarie offers new investors both good potential share price growth in the medium term and reasonable income returns along the way.
A 10-year history of shareholder returns presented in the company's 1H FY23 management analysis shows Macquarie has consistently grown its earnings per share (EPS) every year (except during the COVID years).
Motley Fool contributor Bronwyn Allen owns shares in Macquarie Group Ltd.
National Australia Bank Ltd
What it does: NAB is an ASX 200-listed financial stock offering a range of banking and financial services, including wealth management. With a market cap of almost $100 billion, it's one of Australia's 'big four' banks.
By Bernd Struben: NAB has been a reliable income stock for a decade, paying out twice-yearly, fully-franked dividends every year since 2012. The bank has a strong focus on business banking. And it operates in a fairly resilient sector amid an environment of rising interest rates. Indeed, the NAB share price is up by almost 9% in 2022 based on its closing price of $31.35 on Friday.
NAB recently reported an 8.3% year-on-year increase in its cash earnings ($7.1 billion) for the 12 months ending 30 September. The bank declared a final dividend of 78 cps, bringing the full-year dividend to $1.51 cps, up 18.9% from the prior year.
At the current share price, that works out to a trailing dividend yield of 4.8%.
Motley Fool contributor Bernd Struben does not own shares in National Australia Bank Ltd.
