These ASX dividend shares could be top Christmas gifts for income investors

Telstra Corporation Ltd (ASX:TLS) and this ASX dividend share could be perfect Christmas gifts for income investors…
The post These ASX dividend shares could be top Christmas gifts for income investors appeared first on The Motley Fool Australia. –

4 asx shares to buy for christmas represented by 4 little christmas presents

Unfortunately, as much as income investors may wish for it, Santa will not be bringing interest rate increases this Christmas.

In fact, if many economists are to be believed, it could be over two years until rates start to head higher from their record lows.

In light of this, dividend shares look likely to remain the best way to earn a passive income in 2021.

But which dividend shares should you buy? Here are two to consider:

BHP Group Ltd (ASX: BHP)

Investors that are not opposed to investing in the resources sector, might want to take a closer look at the Big Australian. It is one of the world’s largest miners and the owner of some of the highest quality operations across the globe.

With iron ore and copper prices surging higher this year and oil prices rebounding strongly from their lows, BHP has been tipped to deliver a bumper profit result in FY 2021. And with its balance sheet in such good health, the company looks set to reward shareholders handsomely with dividends.

Macquarie is expecting this to be the case and has forecast a fully franked ~$3.85 per share dividend in FY 2021. Based on the current BHP share price, this represents a massive 9% dividend yield.

Telstra Corporation Ltd (ASX: TLS)

Another dividend share to look at is Telstra. With the end of the NBN rollout in sight and the company’s T22 strategy progressing very well, the hard days certainly appear to be behind this telco giant. In addition to this, the arrival of 5G internet looks set to give its hugely important mobile business a big boost in the coming years.

Another potential positive on the horizon is its plan to split into three separate businesses. This will allow Telstra to take advantage of potential monetisation opportunities and unlock value for shareholders.

Goldman Sachs is pleased with its plan and is positive on its outlook. It has a buy rating and $3.60 price target on Telstra’s shares and is forecasting a 16 cents per share fully franked dividend in FY 2021 and beyond. Based on the current Telstra share price, this would provide investors with a 5.3% dividend yield.

These Dividend Stocks Could Be Your Next Cash Kings (FREE REPORT)

Motley Fool Australia’s Dividend experts recently released a brand-new FREE report revealing 3 dividend stocks with JUICY franked dividends that could keep paying you meaty dividends for years to come.

Our team of investors think these 3 dividend stocks should be a ‘must consider’ for any savvy dividend investor. But more importantly, could potentially make Australian investors a heap of passive income.

Don’t miss out! Simply click the link below to grab your free copy and discover these 3 high conviction stocks now.

Click Here For Your Free Stock Report

Returns As of 6th October 2020

More reading

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post These ASX dividend shares could be top Christmas gifts for income investors appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!