If you’re looking for dividend shares to buy, then you may want to look at the two listed below.
Here’s why these ASX dividend shares are rated as buys by the team at Morgans:
Bapcor Ltd (ASX: BAP)
The first ASX dividend share could be a buy is Bapcor. It is Asia Pacific’s leading provider of vehicle parts, accessories, equipment, service and solutions.
It has been growing at a solid rate over the last few years. This has been underpinned by its strong market position, growing store footprint, a favourable redirection in consumer spending, and robust demand for used cars.
The team at Morgans appear to believe this positive form can continue. The broker likes Bapcor as it “continues to prove its earnings defensiveness with solid organic/inorganic growth prospects over the medium-term.”
As for dividends, Morgans is forecasting fully franked dividends per share of 21 cents in FY 2022 and then 23 cents in FY 2023. Based on the current Bapcor share price of $6.93, this will mean yields of 3% and 3.3%, respectively.
Morgans has an add rating and $8.45 price target on the company’s shares.
Telstra Corporation Ltd (ASX: TLS)
Another dividend share that Morgans rates highly is Telstra. The broker currently has an add rating and $4.55 price target on the telco giant’s shares. Morgans has been pleased with the success of the T22 strategy and the new T25 strategy that comes into place later this year.
It commented: “From a bottom-up perspective, the [Telstra] business has been transformed over the last few years. The outlook has turned from fighting an uphill battle against NBN and declining ARPU to rational pricing, price rises and a supportive backdrop.”
Looking ahead, the broker notes that “underlying earnings returned to growth in 2H21 and should continue growing out to FY25 (underlying earnings have found a base and are headed higher).”
Its analysts expect this to underpin fully franked dividends per share of 16 cents in FY 2022 and FY 2023. Based on the latest Telstra share price of $4.14, this will mean yields of 3.85% for investors.
The post Broker names 2 ASX dividend shares to buy in January appeared first on The Motley Fool Australia.
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More reading
- 2 ASX 200 shares that could be top buys for growth
- 4 reasons the Telstra (ASX:TLS) share price could be great value
- 2 ASX dividend shares to buy this month: experts
- Here are the 3 most heavily traded ASX 200 shares this Thursday
- These 3 ASX 200 shares are topping the volume charts on Wednesday
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended Telstra Corporation Limited. The Motley Fool Australia has recommended Bapcor. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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