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5 ASX dividend shares with 100% franking I’d buy today

ASX dividend shares are popular investments given their regular income stream and associated franking credits.

What Are Franking Credits?

Here are 5 ASX dividend shares with 100% franking I’d look at buying today.

1. Commonwealth Bank of Australia (ASX: CBA)

Bank shares have historically been popular investments for ASX dividend shares investors.

A majority of earnings are paid out as dividends and their size afford them resilience when markets fall.

But why choose CBA over the other big banks? 

Put simply, CBA does it better than the rest.

The bank earns higher returns on capital against its peers.

It’s also outpacing competitors in terms of market share and growth.

It’s been the number one ASX bank share for years, and there’s little to suggest that will change anytime soon.

2. ASX Ltd (ASX: ASX)

News today that the ASX would be delaying the deployment of its highly anticipated blockchain clearing system did not go down well with investors.

It’s the fourth time the local exchange has pushed back the new software upgrade.

Add in outages of futures and equities trading functions in the past 18 months and many would question why you’d go near the business as an ASX dividends share investment?

The simple answer is because it’s a monopoly.

Sure there is the Chi-X exchange.

But the ASX is the primary exchange for Australian companies.

Even when it slips up, there is little the regulator can do other than issue a fine and a please explain.

Arguably, it should be disrupted if it keeps making more unforced errors.

But any real competitor will be flagged years in advance.

3. Deterra Royalties Ltd (ASX: DRR)

Deterra is an ASX dividend share play on mining.

The business earns a royalty from BHP Group Ltd (ASX: BHP) for any iron ore mined at Mining Area C in the Pilbara.

It then pays out all of its profits in dividends.

But what makes Deterra a more attractive investment than investing directly in a miner is its risk profile.

It takes a clip of revenue, not profit. Subsequently, it’s not exposed as much on both an operational and commodity price basis.

The actual dividend will fluctuate, but its 100% payout ratio is attractive to ASX dividend investors.

4. Endeavour Group Ltd (ASX: EDV)

Endeavour group houses the Dan Murphy’s and BWS liquor chains. The business also owns a stable of hotels and pubs around Australia.

It’s a great reopening play, and its retail operations offer defensive earnings when the economy takes a dip (like when COVID-19 hit).

EDV is also the unofficial gatekeeper to emerging liquor brands.

Achieving national distribution requires getting Endeavour on board, giving the business significant buying power with suppliers.

5. Wesfarmers Ltd (ASX: WES)

This should be the ASX dividend share at the very bottom of your draw.

Owning shares in Wesfarmers is almost a rite of passage for ASX investors.

Its simple mission of earning a return above that of the market – which it has done for decades – through the cycle is what makes the conglomerate so revered.

Bunnings. Officeworks. Kmart. And now a pharmacy chain. This business is as defensive as it gets.

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

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Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. 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. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

At the time of publishing, Lachlan does not have a financial or commercial interest in any of the companies or funds mentioned.
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