Brokers rate these ASX dividend shares as buys

A woman looks excited as she holds Australian dollars in the air.

A woman looks excited as she holds Australian dollars in the air.

Looking for dividends shares to buy for your income portfolio this month? Then take a look at the two listed below which brokers currently rate as buys.

Here’s what you need to know about them:

Dicker Data Ltd (ASX: DDR)

The first ASX dividend share to look at is Dicker Data. It is a leading technology hardware, software, and cloud distributor.

It has been growing at a solid rate for a decade and shows no signs of stopping. For example, during the first quarter, the company reported a 50.5% increase in revenue to $673.6 million and a 22.7% lift in profit before tax to $23.8 million.

Last week, the team at Morgan Stanley retained its overweight rating and $16.00 price target on the company’s shares.

In addition, the broker reaffirmed its forecast for fully franked dividends per share of 41.4 cents in FY 2022 and 48.5 cents in FY 2023. Based on the current Dicker Data share price of $13.04, this will mean yields of 3.2% and 3.7%, respectively.

Westpac Banking Corp (ASX: WBC)

Another dividend share that could be in the buy zone is Westpac.

The team at Citi are positive on Australia’s oldest bank and are forecasting a growing stream of dividends in the coming years.

The broker is currently forecasting fully franked dividend of $1.23 in FY 2022, $1.53 in FY 2023, and then $1.85 in FY 2024. Based on the current Westpac share price of $21.07, if Citi is on the money with these forecasts, it will mean generous yields of 5.8%, 7.25%, and 8.8%, respectively.

But it gets better. The broker sees significant upside for the bank’s shares, with its buy rating and $29.00 price target. This price target is almost 40% higher than where Westpac’s shares currently trade.

The post Brokers rate these ASX dividend shares as buys appeared first on The Motley Fool Australia.

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More reading

Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Dicker Data Limited. The Motley Fool Australia has positions in and has recommended Dicker Data Limited. The Motley Fool Australia has recommended Westpac Banking Corporation. 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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