When it comes to dividend shares, the Australian share market isnât short of options. But with so much choice, it can be hard to decide which ones to buy over others.
The good news is that the team at Morgans has done the hard work for investors and picked out some of the best dividend shares to buy now.Â
Hereâs why these dividend shares make Morgansâ best ideas list:Â
Dexus Industria REIT (ASX: DXI)
The first ASX dividend share that has been given the thumbs up from Morgans is Dexus Industria.
It is the owner of a high quality portfolio of industrial properties. These properties are in-demand with end users, which is supporting strong earnings and attractive dividend payments.Â
The broker currently has a buy rating and $3.25 price target on its shares. It commented:
DXIâs portfolio is valued at $1.76bn and is weighted 79% towards industrial and logistics assets. The weighted average cap rate is 5.1%; WALE 5.9 years; and occupancy 97%. DXI is trading at a discount to NTA, offers an attractive yield with solid underlying portfolio metrics and has near/medium-term growth opportunities via the development pipeline.
Morgans is forecasting dividends per share of 16.4 cents in FY 2023 and 16.9 cents in FY 2024. Based on the latest Dexus Industria share price of $2.40, this will mean yields of 6.8% and 7%, respectively.
HomeCo Daily Needs REIT (ASX: HDN)
Another ASX dividend share that Morgans has put on its best ideas list is HomeCo Daily Needs.
As its name implies, this property company has a focus on daily needs. These include neighbourhood retail properties, retail parks, and healthcare properties.
Morgans currently has an add rating and $1.56 price target on its shares. It explained:
HDN offers investors an attractive distribution yield which is underpinned by contracted rental income. Sites are also in strategic locations with strong population growth. The portfolio has exposure to âlast mileâ logistics, as well as a significant land bank with future development potential (38% site coverage with a ~$500m development pipeline).Â
In respect to dividends, the broker expects dividends per share of 8.3 cents in FY 2023 and 8.7 cents in FY 2024. Based on the latest HomeCo Daily Needs share price of $1.14, this will mean yields of 7.2% and 7.6%, respectively.
The post Broker names 2 ASX dividend shares to buy with ~7% 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 positions in and has recommended COLESGROUP DEF SET. 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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