2 dirt cheap high yield ASX dividend shares to boost your income: analysts

The ASX is home to a large number of companies that pay shareholders dividends each year.

Two buy rated dividend shares that offer investors good yields right now are listed below. Here’s why analysts rate them highly:

HomeCo Daily Needs REIT (ASX: HDN)

The first ASX dividend share that analysts say is a buy is the HomeCo Daily Needs REIT. It is a property company that invests in convenience-based assets across the neighbourhood retail, large format retail, and health and services sub-sectors.

Goldman Sachs is a fan of the company and has a buy rating and $1.57 price target on its shares.

The broker believes HomeCo Daily Needs REIT’s shares are “undervalued at its current valuation given its diversified tenant base.” Goldman also highlights that the company’s portfolio is “well positioned to benefit from secular trends toward last-mile fulfilment offerings.”

As for dividends, its analysts are forecasting dividends per share of 8.3 cents in FY 2023 and 8.5 cents in FY 2024. Based on the current HomeCo Daily Needs share price of $1.25, this will mean dividend yields of 6.6% and 6.8%, respectively.

Rural Funds Group (ASX: RFF)

Another ASX dividend share that has been named as a buy is Rural Funds. It is an Australian agricultural property company with a portfolio of high quality assets.

Bell Potter is positive on the company and recently upgraded its shares to a buy rating with a $2.75 price target.

Once again, its analysts believe that Rural Funds’s shares are undervalued at the current level. The broker notes that “the current discount to adjusted NAV reflects what historically would be considered an attractive entry point.”

In addition, the broker is forecasting Rural Funds to continue to pay generous dividends in the coming years. It is expecting an 11.7 cents per share dividend in FY 2023 and then a 12.7 cents per share dividend in FY 2024. Based on the current Rural Funds share price of $2.45, this represents yields of 4.8% and 5.2%, respectively.

The post 2 dirt cheap high yield ASX dividend shares to boost your income: analysts 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 RURALFUNDS STAPLED. 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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