Finding rock-solid dividend payers on the ASX is harder than it might first appear. Although many ASX shares pay dividends to their investors, few do so regularly or with certainty.
To see this in action, we only need to look at the payouts from BHP Group Ltd (ASX: BHP) and Woodside Energy Group Ltd (ASX: WDS) over recent years.
However, there are still many shares on the ASX that I would consider highly reliable if receiving consistent dividend income is a priority for your ASX share portfolio.
No share provides a guaranteed stream of income, of course. You'll need to find a term deposit if you want that. But I think the following shares are just about as good as it gets if you want steady cash flow from your investments.
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3 ASX shares offering rock-solid yields
MFF Capital Investments Ltd (ASX: MFF)
First up is a company you might not have heard of before. MFF is a listed investment company (LIC), which means that it invests in a portfolio of other assets that are managed on behalf of MFF's shareholders.
In this case, most of MFF's portfolio is invested in high-quality American stocks, including Visa, Amazon, Mastercard, Alphabet, and Meta Platforms.
I appreciate this company's Buffett-esque habit of buying solid businesses and holding them for the long term.
This approach has been paying dividends for MFF (literally). MFF has been steadily ratcheting up its payouts. In 2019, investors received a total of 3.5 cents per share in fully-franked dividends. But in 2024, this will rise to 13 cents per share. At Friday's closing price of $3.83, MFF shares had a dividend yield of 3.39%.
ANZ Group Holdings Ltd (ASX: ANZ)
The ASX bank stocks are famous for their fat dividend payments. Not only do the big four typically offer market-leading yields, but they all have a pretty consistent track record of funding regular payouts. That's with the notable exceptions of panic periods like the COVID pandemic and the global financial crisis.
ANZ is no different. While I personally don't own ANZ and instead have a small stake in National Australia Bank Ltd (ASX: NAB), ANZ would be my pick today if prioritising dividend income was the goal of my portfolio.
While huge share price gains have reduced the other big four banks' yields considerably at current prices, ANZ remains on a compelling yield of 5.97% today.
Vanguard Australian Shares High Yield ETF (ASX: VHY)
Finally, let's discuss an exchange-traded fund (ETF). In my view, the Vanguard Australian Shares High Yield ETF is a great pick for any income-focused portfolio.
This fund holds a portfolio of around 70 underlying ASX dividend shares, all of which are chosen for their future dividend income potential. These include everything from the banks and miners to Telstra Group Ltd (ASX: TLS) and Transurban Group (ASX: TCL).
Unlike the other two investments here, you can expect some fluctuation in this ETF's annual payouts since they more or less reflect the dividends that the entire market pays out in any given year. But I still believe that this is a rock-solid income investment since you are getting a broad spectrum of income from different corners of the stock market.
Additionally, this ETF pays quarterly dividends, which is handy for income investors. At current prices, VHY units have a trailing yield of 5.39%.
