ASX dividend shares could be a great way to find a source of income in May 2021. I think a few are worthy of looking into.
Not every business that pays a dividend is going to be a good investment. Just look at where the Telstra Corporation Ltd (ASX: TLS) share price has gone over the last five years.
I’d be very happy to buy these two ASX dividend shares for income in May:
WAM Microcap Limited (ASX: WMI)
WAM Microcap might be one of the best ASX stocks to own for income. The listed investment company (LIC) is committed to paying good dividends. It’s planning to pay $0.08 per share of ordinary dividends in FY21. That amounts to fully franked dividend yield of 4.28%.
The idea behind this LIC is to invest in small caps, usually with businesses that are worth less than $300 million. It’s run by the strong small caps team at Wilson Asset Management (WAM). The returns have been very strong, though past performance is not a guarantee for future returns.
Since inception in June 2017, the portfolio has returned 23.9% per annum. That’s before expenses, fees and taxes. Even so, the net result has been really good. Small caps have the potential to make really good returns – if you know what you’re doing.
It has been paying special dividends as well, which increases the potential dividend yield on offer to investors.
APA Group (ASX: APA)
APA is one of the biggest energy infrastructure owners in Australia. It has a huge gas pipeline network around the country.
The ASX dividend share has one of the best dividend track records on the ASX. It has increased its distribution every year over the last decade and a half. That’s an excellent record and offers good reliability.
It actually provides half of the nation’s gas usage, making a pretty reliable income idea.
APA is also one of Australia’s largest owners and operators and renewable power generation assets, with wind and solar projects across Western Australia, South Australia and Queensland.
It recently announced its first hybrid energy microgrid project in the Gruyere Gold Mine in Western Australia, combining solar energy with battery energy storage.
Right now, APA offers a distribution yield of 5.1%.
There are plenty of other ASX dividend shares that I look at for income potential right now.
