If you’re building an income portfolio, then you may want to look at the ASX shares listed below.
Both ASX dividend shares offer attractive yields and have been named as buys by analysts. Here’s what you need to know about them:
BHP Group Ltd (ASX: BHP)
The first ASX dividend share to consider buying is this mining giant. BHP has a collection of world class operations across a number of locations and commodities. The latter includes Petroleum, Potash, Copper, Iron ore, Coal and Nickel. Though, the company is in the process of spinning out its petroleum assets via a merger with Woodside Petroleum Limited (ASX: WPL), which shareholders will be given a slice of.
As we saw with its recent results, these commodities are commanding favourable prices at present, which is underpinning significant free cash flow generation. This is expected to continue in the near term and support generous dividend payments.
Macquarie, for example, is forecasting fully franked dividends of $4.19 per share in FY 2022 and $2.54 per share in FY 2023. Based on the current BHP share price of $47.97, this will mean yields of 8.7% and 5.3%, respectively.
Its analysts have an add rating and $54.00 price target on the company’s shares.
Centuria Industrial Reit (ASX: CIP)
Another ASX dividend share to consider is Centuria Industrial. It is a property company with a focus on high quality industrial assets that deliver income and capital growth to investors.
In FY 2022, Centuria Industrial has been experiencing strong nationwide demand for industrial space, particularly from ecommerce-related tenant customers. This resulted in Centuria Industrial reporting strong rental income growth and a 26% increase in funds from operations (FFO) to $53.9 million during the first half.
The good news for income investors is that this positive form bodes well for dividends. Morgan Stanley, for instance, is forecasting Centuria Industrial REIT to pay above guidance distributions of 18.1 cents per share this year and in FY 2023.
Based on the current Centuria Industrial REIT share price of $3.83, this will mean 4.7% dividend yields for investors. Morgan Stanley also sees decent upside. It has an overweight rating and $4.35 price target on the company’s shares.
The post 2 buy-rated ASX dividend shares with big yields appeared first on The Motley Fool Australia.
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More reading
- 2 ASX dividend shares with BIG yields
- Own BHP (ASX:BHP) shares? Here’s how the ASX 200 miner is battling COVID
- Is BHP (ASX:BHP) the best ASX dividend share?
- Why BHP, Fortescue, Netwealth, and Santos shares are falling
- Top brokers name 3 ASX shares to buy today
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 has no position in any of the stocks mentioned. 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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