Got money to invest for dividends? Here are 3 ASX shares

If you have some money to invest for dividends then these 3 ASX shares could be the answer to generate that income.
The post Got money to invest for dividends? Here are 3 ASX shares appeared first on The Motley Fool Australia. –

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Do you have some money set aside to invest for income? The three ASX dividend shares discussed below could be ones to think about.

It’s difficult to generate high levels of income right now because of the ultra-low interest rate setting that central banks have put economies on, including the Reserve Bank of Australia (RBA).

These three ASX dividend shares could be a potential solution:

Brickworks Limited (ASX: BKW)

Brickworks currently has a grossed-up dividend yield of 4.1%.

The diversified property business hasn’t cut its dividend in over four decades, making it a very reliable income option.

Brickworks is taking the approach of steadily increasing the dividend each year at a decent single digit pace. It was one of the few S&P/ASX 200 Index (ASX: XJO) shares to increase its dividend during the COVID-affected 2020 year.

It’s thanks to its quality assets of the 50% ownership of an industrial property trust and the substantial holding of Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) shares that have continued to fund a higher and higher dividend for Brickworks. These two assets continue to grow in value as they invest in new projects or investments.

Accent Group Ltd (ASX: AX1)

Accent currently has a grossed-up dividend yield of 5.9%.

The ASX dividend share sells an impressive array of shoe brands in different store networks and online.

It has adapted very well to the COVID-19 era with a large jump in online sales. In the first six months of FY21, Accent saw digital sales rises by 110% to $108.1 million – this represented 22.3% of sales. The growth of profit margins helped increase the dividend by just over 52%.

The business aims to open 90 new stores in FY21, which will be a sizeable boost to organic growth. Accent also unveiled another acquisition called Glue Store for $13 million which will grow its presence in the youth shoe and apparel market further. This should add another $90 million of annual sales, including $16.6 million of online sales.

Accent also announced that Brett Blundy would re-join the Accent board.

Nick Scali Limited (ASX: NCK)

Nick Scali currently has a grossed-up dividend yield of 8.1%.

The furniture retail ASX dividend share is currently rated as a buy by the broker Citi, which has a price target of $12.05 on the business.

Nick Scali is one of the ASX shares that have benefited from the high level of consumer spending over the last 12 months.

The half-year result included a lot of profit growth, with both strong sales and even stronger margin improvement. HY21 sales went up 24.4% to $171.1 million. However, the earnings before interest and tax (EBIT) margin increased 1,270 basis points – this helped underlying earnings per share (EPS) rise by 99.5% to $0.50.

Nick Scali’s interim dividend was increased by 60% and its order book was the largest it had ever been at the end of January 2021, which suggests more profit growth in the second half of the year.

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Returns As of 15th February 2021

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Motley Fool contributor Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Accent Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Got money to invest for dividends? Here are 3 ASX shares appeared first on The Motley Fool Australia.

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