Dividend investing is a great way to ensure that you create passive wealth during both bull and bear markets. The ASX 200 index has been posting record highs this week, however, the narrative is changing, and the paradigm is shifting. Growth stocks are being dumped for value stocks as the economy is coming back to life.
With low interest rates continuing to persist and value stocks becoming more attractive, dividend stocks hit the sweet spot.
Out List of ASX Dividend Shares to Buy Right Now
Australia and New Zealand Banking (ASX: ANZ)
ANZ is an Australian multinational banking and financial services company that operates in 33 markets globally with representation in Australia, New Zealand, Asia, Pacific, Europe, America and the Middle East. ANZ recently announced that its interim dividend for 2021 would come in at 70 cents per share. The company’s strong earnings, improving environmental conditions and a combination of their strong capital management has given them the confidence to pay this interim dividend. In H1FY21, ANZ’s statutory profit after tax was up by 45% at $2.9mn, driven by a net credit provision release of $491mn. The company has not faced any large credit losses due to the pandemic, in fact they have $4.3bn in their reserve if conditions deteriorate. The company’s capital position and strong balance sheet gives them the flexibility to return surplus capital to shareholders.
ANZ shares are currently trading at $27.79, translating to a dividend yield of 3.77% and are a great fit into the top 3 dividend stocks.
Infomedia (ASX: IFM)
Infomedia is a leading global provider of SaaS solutions to the parts and service sector of the automotive industry that supplies online parts selling systems, sophisticated service selling systems, a range of publications, as well as data analysis and information research for automotive and lubricant industries. The company is a highly cash generative business and maintains a solid financial position. The company recently announced its acquisition with Simplemart which is a US based e-commerce platform, a company that has achieved $10mn of revenue as on 31st March, 2021 and is expected to double digit growth rate in 2021 and 2022. This acquisition will definitely add to the prospects of Infomedia’s business resulting in high revenue and profit and will push the company to give out dividends.
Infomedia declared its interim dividend of 2.15 cents per share for 2021 and with IFM shares trading at $1.55 a share, the dividend yield is fairly high at 3.66% – making it a dividend stock to consider.
Brickworks (ASX: BKW)
Brickworks Ltd. manufactures, sells, and distributes building products for the residential and commercial markets in Australia and internationally. It operates through Building Products Australia, Building Products North America, Property, and Investments segments. The company recently announced an interim dividend of 21 cents per share. The company’s two huge latest projects for Amazon and Coles Group Ltd. are expected to significantly increase their rental profit and upliftment of their asset value, which will fund higher dividends for the years to come. The company has a significant pipeline of work, which will translate into an increase in demand for building products resulting into a strong second half of FY21.
BKW shares are currently trading at $21.30 after surging close to 11% in 2021. Their dividend and share price growth make it a perfectly balanced dividend stock to buy now.
Growth stocks are potentially one of the hardest to pick as there are a lot of factors that need to be considered – from industry tailwinds to the financial health of the individual stocks and a lot of little things in between them. Shares in the Value research team have picked their top 5 ASX stocks to buy in 2021. Click here to download the report for free.