BWP Trust (ASX:BWP) and this ASX dividend shares offer income investors attractive yields in the current environment…
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Later today the Reserve Bank will meet and could take the cash rate down to zero.
While this would be a blow for income investors, don’t worry, because the Australian share market is home to a number of companies paying shareholders dividends.
Two ASX dividend shares with attractive yields are listed below. Here’s what you need to know about them:
BWP Trust (ASX: BWP)
The first ASX dividend share to look at is BWP Trust. It is the owner of a total of 68 Bunnings Warehouse sites across the Australian markets.
Given the quality of the Bunnings business and its strong performance during the pandemic, the home improvement giant has been a fantastic tenant to have in the current environment.
So much so, BWP has been able to collect its rent largely as normal during the crisis, allowing it to continue paying its distributions.
In FY 2020, the BWP board lifted its distribution to 18.29 cents per unit and advised that a similar payout is expected this year. Based on the current BWP share price, this represents a 4.25% yield.
Rural Funds Group (ASX: RFF)
Another ASX dividend share to consider is Rural Funds. It is a real estate investment trust (REIT) that owns a diversified portfolio of high quality Australian agricultural assets
At the end of FY 2020, 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. These leases also include rental increases which are designed to allow the Rural Funds board to increase its distribution by 4% per annum.
This year the company intends to do exactly that and is forecasting a full year distribution of 11.28 cents per unit. Based on the current Rural Funds share price, this works out to be a 4.6% yield.
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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.