BWP Trust (ASX:BWP) and this ASX dividend share could be top options for income investors right now…
The post 2 ASX dividend shares to solve your income needs appeared first on The Motley Fool Australia. –
Are you looking to boost your portfolio with some income options when the market reopens?
Then you might want to take a look at the ASX dividend shares listed below. Here’s what you need to know about them:
BWP Trust (ASX: BWP)
BWP Trust is the owner of 68 Bunnings Warehouse sites across Australia. Given the quality of the Bunnings business and its strong performance during the pandemic, BWP has been able to collect its rent largely as normal this year. This, combined with an increase in the fair value of its assets, led to the company reporting an impressive 24.4% increase in full year profit to $210.6 million in FY 2020.
This strong form also allowed the BWP board to increase its distribution to 18.29 cents per unit. Based on the current BWP share price, this represents a trailing 4% yield for investors. Management advised that a similar dividend is expected in FY 2021.
Rural Funds Group (ASX: RFF)
Rural Funds is a real estate investment trust (REIT) that owns a diversified portfolio of high quality Australian agricultural assets. These assets are leased to some of the most experienced agricultural operators in the country.
At the end of the last financial year, the company owned a total of 61 properties with a combined value of $1 billion and a weighted average lease expiry (WALE) of 10.9 years. From these properties it was generating adjusted funds from operations (AFFO) of 11.7 cents per share, which allowed its board to increase its full year distribution to 10.8 cents per share.
Pleasingly, another dividend increase is coming this year. Thanks to its long leases and rental increases, the company intends to lift this distribution by its 4% per annum growth rate target in FY 2021. This will mean a 11.28 cents per share distribution for shareholders. Based on the current Rural Funds share price, this works out to be a 4.35% yield.
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Returns As of 6th October 2020
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.