These ASX dividend shares have been named as buys for income investors

A woman wearing glasses and a black top smiles broadly as she stares at a money yarn full of coins representing the rising JB Hi-Fi share price and rising dividends over the past five years

A woman wearing glasses and a black top smiles broadly as she stares at a money yarn full of coins representing the rising JB Hi-Fi share price and rising dividends over the past five years

If you’re looking to boost your income portfolio in August, then you may want to look at the shares listed below.

Here’s why these ASX dividend shares could be worth considering right now:

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.

Dicker Data has been growing at a solid rate for many years and continued this trend during the first half of FY 2022. Last week the company released its half year update and advised that it expects to report a 36% increase in revenue to $1,459 million and an 11% lift in operating profit before tax to a record of $51 million (excluding acquisition costs).

While this does imply a slight slowdown in growth compared to its first quarter performance, the team at Morgan Stanley remain positive. As a result, the broker retained its overweight rating with a trimmed price target of $14.00.

In addition, the broker is forecasting fully franked dividends per share of 36.2 cents in FY 2022 and 42.2 cents in FY 2023. Based on the current Dicker Data share price of $11.20, this will mean yields of 3.2% and 3.8%, respectively.

South32 Ltd (ASX: S32)

Another ASX dividend share that could be a top option for income investors is diversified mining and metals company South32.

The team at Morgans are very positive on the mining giant. This is due to its attractive valuation, the de-risking of its growth portfolio, and its earnings-linked dividend policy. The broker expects the latter to support some very big dividends in the coming years.

For example, Morgans is forecasting fully franked dividends per share of 28 cents in FY 2022 and 35 cents in FY 2023. Based on the current South32 share price of $3.86, this will mean yields of 7.25% and 9.1%, respectively.

Another positive is that Morgans sees plenty of upside in the South32 share price. It has an add rating and $6.00 price target on the miner’s shares.

The post These ASX dividend shares have been named as buys for income investors 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 positions in and has recommended Dicker Data Limited. The Motley Fool Australia has positions in and has recommended Dicker Data Limited. 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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