Brokers name 2 ASX dividend shares to buy

Income investors that are looking for dividend options this week might want to check out the two ASX shares listed below.

Both of these ASX dividend shares have recently been tipped as buys by brokers. Here’s why they are bullish:

New Hope Corporation Limited (ASX: NHC)

According to a note out of Credit Suisse, its analysts have retained their outperform rating with a slightly trimmed price target of $7.80 on this coal miner’s shares. This follows the release of a strong full year result for FY 2022, which saw New Hope declaring dividends that were ahead of expectations.

Looking ahead, the broker believes the company is well-placed to pay even bigger dividends in the coming years thanks to sky high coal prices. In light of this, it sees significant value in the New Hope share price at the current level.

Credit Suisse is forecasting a fully franked $1.67 per share dividend in FY 2023 and then a fully franked $1.39 per share dividend in FY 2024. Based on the current New Hope share price of $6.16, this will mean stunning yields of 27.1% and 22.5%, respectively.

Origin Energy Ltd (ASX: ORG)

A note out of Macquarie reveals that its analysts have retained their outperform rating and $7.42 price target on this energy company’s shares. This follows news that the company is selling its Beetaloo Basin interests to Tamboran Resources for $60 million plus royalties.

The broker is pleased with the decision and expects it to boost Origin’s ESG credentials. In addition, it believes the cost savings could support higher dividends. Outside this, Macquarie highlights that higher than expected oil prices are supportive of strong free cash flow generation.

Macquarie is expecting this to lead to dividends per share of 35 cents per share in FY 2023 and 30 cents per share in FY 2024. Based on the current Origin share price of $5.74, this will mean yields of 6.1% and 5.2%, respectively, for investors.

The post Brokers name 2 ASX dividend shares to buy appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• 3 ASX 200 shares paying out ‘special’ dividends in 2022
• Dividend beasts: 5 ASX shares with monster yields and no debt
• Macquarie tips even more upside for New Hope share price
• Here are the top 10 ASX 200 shares 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 Scott Phillips.

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