Brokers name 2 ASX dividend shares to buy with big yields

Four ASX dividend shares investors stand in a line holding cash fanned in their hands with thoughtful looks on their faces wondering what the APA share price will do today and how big the APA dividend yield will be in 2022

Four ASX dividend shares investors stand in a line holding cash fanned in their hands with thoughtful looks on their faces wondering what the APA share price will do today and how big the APA dividend yield will be in 2022

If you’re looking for dividend shares with big yields, then you may want to look at the two listed below.

Here’s why analysts rate these ASX dividend shares as buys:

Dexus Industria REIT (ASX: DXI)

The first ASX dividend share that has been rated as a buy is Dexus Industria.

It is an industrial and office focused property company, formerly known as APN Industria, that owns interests in office and industrial properties.

Moelis is bullish on Dexus Industria and recently upgraded its shares to a buy rating with a $3.54 price target. It appears to see the recent weakness in its share price as a buying opportunity.

And while the broker expects inflation to weigh on its earnings a touch, it is still expecting big dividends in the near term.

For example, Moelis is forecasting dividends per share of 17.3 cents in FY 2022 and 17.6 cents in FY 2023. Based on the latest Dexus Industria share price of $3.12, this will mean yields of 5.5% and 5.7%, respectively.

South32 Ltd (ASX: S32)

Another ASX dividend share that is expected to provide investors with big dividends in the near term is South32.

This is being underpinned by the mining giant’s exposure to a number of commodities which are in demand and commanding high prices. This includes green metals such as aluminium.

Goldman Sachs is very positive on South32 and has a conviction buy rating and $5.70 price target on its shares. Its analysts are expecting the company’s strong free cash flow generation to underpin fully franked dividends per share of 27.5 US cents in FY 2022 and 47.3 US cents in FY 2023.

Based on the current South32 share price of $5.09 and the latest exchange rates, this will mean very big yields of 7.5% and 12.9%, respectively.

The post Brokers name 2 ASX dividend shares to buy with big yields 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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