10 ASX Dividend Share Ideas To Beat Falling Interest Rates

With the RBA cutting the official cash rate to a new record low of 0.75%, here are 10 blue-chip ASX dividend shares for you to consider adding to your watchlist.

To calculate the yields on these stocks, I have used the historical/trailing dividend payments. Meaning, the dividends the company has paid or declared in the past year. Keep in mind the company may change/cancel the dividend in the future.

1. Premier Investments Limited (ASX: PMV) – historical yield: 3.5%

Premier Investments was listed on the ASX in December 1987 to be an investment vehicle to acquire or attain controlling stakes of ‘premier’ Australian companies with a particular focus on retailing, importing and distributing. Premier has leading retail brands like Smiggle, Peter Alexander, Just Jeans and Jay Jays. It also owns just over 28% of Breville Group Ltd (ASX: BRG) and part of Myer Holdings Ltd (ASX: MYR).

2. Flight Centre Travel Group Ltd (ASX: FLT) – historical yield: 4%

Flight Centre is one of the world’s largest travel agencies and has company-owned operations in more than 23 countries, while its corporate travel management network spans more than 90 countries. The Group employs more than 19,000 people and owns 2,800 businesses. It remains founder-led by Graham ‘Skroo’ Turner to this day.

3. SG Fleet Group Ltd (ASX: SGF) – historical yield: 7%

SG Fleet provides motor vehicle fleet management, vehicle leasing, short term hire, consumer vehicle finance, and salary packaging services in Australia, New Zealand, and the United Kingdom. The company offers fleet management services including funding options, such as operating lease/contract hire, finance lease, and client sourced funding services. SG Fleet has also built its own software tools to help corporate clients.

4. BHP Group Ltd (ASX: BHP) – historical yield: 5%

BHP is a world-leading resources company, extracting and processing minerals (like iron ore and copper), oil and gas. The company has more than 62,000 employees and contractors, primarily in Australia and the Americas. Headquartered in Melbourne, BHP has shares listed on both the ASX and London Stock Exchange (BHP Billiton Plc).

5. National Australia Bank Ltd (ASX: NAB) – historical yield: 6%

NAB is one of the big four banks in Australia in terms of market capitalisation, earnings and customers. However, in 2019, it was Australia’s largest lender to businesses and has operations in wealth management and residential lending. NAB also operates the online-only Ubank, and competes against the likes of Commonwealth Bank (ASX: CBA) and ANZ (ASX: ANZ) for share of the mortgage and business lending markets.

6. APA Group (ASX: APA) – historical yield: 4%

APA Group listed on the ASX in 2000 with just six employees and has since gone on to become one of Australia’s leading energy infrastructure businesses. Today, APA has 1,800 employees, 15,400km of pipelines and a 28,900km distribution network. APA is among the largest companies on the ASX with a market capitalisation of over $13 billion.

7. Telstra Corporation Ltd (ASX: TLS) – historical yield: 4%

Telstra is our country’s oldest telecommunications business, having built the first telegraph line in 1854. In 2019, it provides more than 17 million retail mobile services, around 5 million retail fixed voice services (e.g. home phones) and 3.6 million broadband services. Telstra also has operations in eHealth, network applications and subsea cabling. In recent years, Telstra has been forced to cut its dividend payments amid rising debt and competition on the National Broadband Network (NBN).

8. Wesfarmers Ltd (ASX: WES) – historical yield: 4.9%

Wesfarmers is a 100 year-old conglomerate which at various times has owned and operated some of Australia’s largest retail brands such as Kmart, Target and more. Today, its largest business is Bunnings Warehouse, the number-one DIY home improvement business.

9. AP Eagers Ltd (ASX: APE) – historical yield: 2.6%

A.P. Eagers is Australia’s oldest listed automotive retail group, with its origins tracing all the way back to 1913. It has over 4,500 employees and operates automotive dealerships across Queensland, South Australia, New South Wales, Victoria, Northern Territory and Tasmania. The company has just made plans to merge with fellow vehicle business Automotive Holdings Group Ltd (ASX: AHG). Dividend investors will be wise to watch the transition and integration closely.

10. Woolworths Group Ltd (ASX: WOW) – historical yield: 2.7%

Woolworths was founded in 1924 by Percy Christmas and its first store was opened in Sydney’s Imperial Arcade. Woolworths is Australia’s largest supermarket business, operating Woolworths supermarkets in Australia and Countdown in New Zealand. It also runs the retail department store Big W. With over 3,000 stores and more than 200,000 employees, the Woolworths Group is one of Australia’s largest employers.

What Now?

Each of these blue-chip shares deserve a spot on ASX dividend investors’ watchlists. However, that does not mean they deserve a spot in your portfolio.

The bottom line for me is if interest rates keep moving lower, Australians will feel more and more compelled to shift away from defensive assets and cash. Given interest rates are likely to stay lower for longer, at Rask Invest we believe everyone should have some exposure to growth/high-income investments with a view to the long-term (i.e. 5+ years minimum).

However, it’s always important to consider the risks first. Meaning, never let one interest rate decision from the RBA dictate your entire investment strategy. Have a plan and make sure you’re happy with it, because it’ll be important for you to stick to the plan through thick and thin.

Disclosure: At the time of writing, Owen has no financial interest in any of the companies mentioned.

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The information on this website is general financial advice only. That means, the advice does not take into account your objectives, financial situation or needs. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. Please read our Terms & Conditions and Financial Services Guide before using this website.

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