2 ASX dividend shares to double up on right now

I think these two stocks remain attractive for income investors.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

As we covered yesterday, finding big-yielding ASX dividend shares on the market right now is a little trickier than it used to be.

Between some popular dividend stocks rising so high that they have nothing like the yields they used to (looking at you Commonwealth Bank of Australia (ASX: CBA) and Wesfarmers Ltd (ASX: WES)), and other dividend shares cutting their payouts (BHP Group Ltd (ASX: BHP)), the hunt for income has certainly become more onerous.

But despair not – the ASX still has quite a few dividend payers that offer decent yields to income investors. Today, let's talk about two examples, both of which offer strong, sturdy, and recently-raised payouts.

Person handing out $50 notes, symbolising ex-dividend date.

Image source: Getty Images

2 ASX dividend shares worth a look today

Telstra Group Ltd (ASX: TLS)

First up is an ASX dividend share that would be familiar to most income investors. Telstra has been paying steady, fully franked dividends for decades. These have proven remarkably resilient, holding steady throughout the COVID pandemic and increasing throughout the high inflation that followed in 2022, 2023, and 2024.

This, in my view, underscores just how vital telecommunications services remain in our modern world. As well as Telstra's dominant position in the Australian telco sector.

In its earnings report last month, Telstra increased its interim dividend yet again, this time up to 9.5 cents per share.

Together with September's final dividend of 9 cents per share, this gives Telstra a dividend yield of 4.47% at Friday's closing share price of $4.14.

Coles Group Ltd (ASX: COL)

Coles is another popular ASX 200 dividend share and shares many of Telstra's defensive characteristics. After all, we all don't have much choice when it comes to regularly eating, drinking, and stocking our households with life's essentials.

As such, Coles has a highly inelastic earnings base from which it can draw its dividends. The company demonstrates this with its six-year streak (and counting) of delivering annual dividend pay rises.

In Coles' own earnings report this week, this trend continued, with the company hiking its latest interim dividend up to 32 cents per share. As is typical with Coles, this will also come with full franking credits attached.

Unfortunately for share market bargain-appreciates, Coles has been one of those ASX dividend shares that have seen significant price appreciation in recent months, which has had a depressing effect on its dividend yield. Even so, the company is currently trading on a decent yield of 3.4% at last pricing.

Motley Fool contributor Sebastian Bowen has positions in Telstra Group and Wesfarmers. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. The Motley Fool Australia has positions in and has recommended Coles Group and Telstra Group. The Motley Fool Australia has recommended BHP Group and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Dividend Investing

Australian dollar notes in the pocket of a man's jeans, symbolising dividends.
Broker Notes

Are CBA shares still a good buy for passive income?

A leading analyst delivers his verdict on CBA’s passive income appeal.

Read more »

A man holding a cup of coffee puts his thumb up and smiles while at laptop.
Dividend Investing

2 defensive ASX dividend stocks for reliable income

I'd have these two defensive dividend shares in my portfolio to help hedge against sharemarket volatility.

Read more »

Woman holding $50 and $20 notes.
Dividend Investing

21 ASX shares going ex-dividend over the school holidays

Shares going ex-dividend include Myer and Washington H. Soul Pattinson & Company.

Read more »

Person handing out $100 notes, symbolising ex-dividend date.
Dividend Investing

$500 buys 148 shares in this 11% yielding ASX income stock!

I'd add this ASX income stock to my portfolio.

Read more »

A retiree relaxing in the pool and giving a thumbs up.
Dividend Investing

Looking for long-term passive income? Try one of these ASX shares

These businesses are on track to provide investors with ultra-long-term income.

Read more »

A man in a business suit stands on top of an office chair in a sea of murky water with shark fins circling.
Dividend Investing

Thinking of buying WAM Capital shares for the 9% dividend yield? Read this first

Look before you leap into this dividend stock.

Read more »

Person with a handful of Australian dollar notes, symbolising dividends.
Dividend Investing

1 ASX dividend share and 1 ASX growth stock to buy in April

These ASX shares deliver a one-two punch: income now, growth later.

Read more »

Hand holding Australian dollar (AUD) bills, symbolising ex dividend day. Passive income.
Dividend Investing

2 ASX shares with dividend yields above 8%

These high-yield ASX dividend shares have a lot to like.

Read more »