2 top ASX dividend shares to buy according to analysts

Rolled up notes of Australia dollars from $5 to $100 notes

Rolled up notes of Australia dollars from $5 to $100 notes

If you’re looking for dividend shares to buy then you may want to look at the ones below that brokers are recommending.

Here’s what the brokers are saying about these ASX dividend shares:

BHP Group Ltd (ASX: BHP)

The first ASX dividend share to look at is BHP. It is of course one of the world’s largest mining companies.

It could be a top option for income investors thanks to its world class operations across a number of commodities and the huge free cash flow they are generating. This strong cash flow provides the Big Australian with the opportunity to reward shareholders with big dividends and consider M&A activities.

Analysts at Goldman Sachs are positive on the company and have just slapped a buy rating and $51.20 price target on its shares. The broker likes BHP due to its “attractive valuation & FCF, and upside from ~US$20bn Copper growth pipeline.”

In addition, the broker is forecasting fully franked dividend yields of 11% in FY 2022 and 8.9% in FY 2023.

National Australia Bank Ltd (ASX: NAB)

Another ASX dividend share that could be a buy is banking giant NAB. It could be a top option thanks to its strong position in business banking and the acquisitions of digital bank 86 400 and Citigroup’s Australian consumer business.

The latter are expected to help NAB achieve scale in digital and consumer banking offerings.

The team at Macquarie is positive on NAB and has an outperform rating and $34.00 price target on the company’s shares. Macquarie likes the bank due to its strong balance sheet position and leverage to higher rates.

As for dividends, the broker is forecasting fully franked dividends per share of $1.46 in FY 2022 and $1.50 in FY 2023. Based on the current NAB share price of $31.24, this equates to yields of 4.7% and 4.8%, respectively.

The post 2 top ASX dividend shares to buy according to analysts appeared first on The Motley Fool Australia.

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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 Scott Phillips.

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