2 top ASX dividend shares to buy for your income portfolio

BWP Trust (ASX:BWP) and this top ASX dividend share could be great options for your income portfolio. Here’s why…
The post 2 top ASX dividend shares to buy for your income portfolio appeared first on The Motley Fool Australia. –

man handing over wad of cash representing ASX retail capital return

Are you looking for some top ASX dividend shares to add to your income portfolio? 

Then you might want to take a look at the ASX dividend shares named below. Here’s what you need to know about them:

BWP Trust (ASX: BWP)

BWP Trust could be an ASX dividend share to look at right now. The commercial property company is the largest owner of Bunnings Warehouse sites across Australia. At the last count, it owned a total of 68 properties which were leased to the home improvement giant.

With demand for home improvement products growing strongly and government stimulus supporting the industry, Bunnings has proven to a fantastic tenant for BWP. It has enjoyed high occupancy rates and been able to collect its rent as normal this year.

As a result, for the first half of FY 2021 BWP”s profit (including property revaluation gains) rose 6% over the prior corresponding period to $144 million.

This allowed management to reaffirm its plans to pay a full year distribution of ~18.3 cents per share. Based on the current BWP share price, this equates to a generous 4.6% dividend yield.

Rural Funds Group (ASX: RFF)

Another ASX dividend share to look at is Rural Funds. It is another owner of commercial property. However, as its name implies, it targets a very different side of the market. 

Rural Funds owns a $1.1 billion portfolio of diversified agricultural assets, including almond and macadamia orchards, premium vineyards, water entitlements, cattle and cropping assets. These are all leased to high quality and experienced tenants.

At the end of the first half, Rural Funds had a very long weighted average lease expiry (WALE) of 11.1 years. This, combined with built in rental increases, means the company is well-placed to grow its distribution by its target of 4% per annum over the long term.

In FY 2021 Rural Funds intends to pay a 11.28 cents per share distribution and then an 11.73 cents per share distribution next year. Based on the current Rural Funds share price, this equates to 4.7% and 4.9% yields.

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Returns As of 15th February 2021

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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.

The post 2 top ASX dividend shares to buy for your income portfolio appeared first on The Motley Fool Australia.

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