2 high-dividend shares to buy today for early retirement

Dividend shares can be a great tool to help you reach an early retirement.

That’s because by investing in shares that pay a high dividend yield, you could speed the process up dramatically.

For example, if you were to invest a theoretical $1 million into a share that pays a 1% dividend yield, you would generate $10,000 of passive income over the 12 months.

However, by investing in a dividend share that offers a yield of 4% or more, investors would be receiving $40,000 in dividends each year.

So, which ASX dividend shares could help you retire earlier?

Telstra Corporation Ltd (ASX: TLS)

Income investors may want to consider buying this telco giant. That’s the view of analysts at Morgans, which like the company due to its successful turnaround via the T22 strategy.

In addition, the broker highlights Telstra’s ongoing restructure as a reason to buy. Its analysts believe the market is undervaluing some of Telstra’s assets and expect the restructure to unlock value for shareholders.

In respect to dividends, the broker is expecting Telstra to continue to pay fully franked 16.5 cents per share dividends in both FY 2023 and FY 2024. Based on the current Telstra share price of $4.10 this equates to yields of 4%.

Morgans has an add rating and $4.60 price target on the company’s shares.

Westpac Banking Corp (ASX: WBC)

Another ASX dividend share that has been tipped as a buy is banking giant Westpac.

Thanks to rising interest rates and the bank’s major cost cutting plans, it has been tipped to generate solid earnings growth in the coming years.

This is expected to underpin some big dividends for investors according to analysts at Goldman Sachs.

Its analysts are forecasting fully franked dividends per share of 148.4 cents in FY 2023 and 160 cents in FY 2024. Based on the current Westpac share price of $23.93, this will mean yields of 6.2% and 6.7%, respectively.

Goldman currently has a conviction buy rating and $27.60 price target on the bank’s shares.

The post 2 high-dividend shares to buy today for early retirement appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Are NAB shares a good investment ahead of earnings season?
• Tech turnaround: Expert picks 2 ASX shares to buy for a 2023 revival
• Morgans names 2 of the best ASX 100 shares to buy now
• Up 20% in 6 months, is the Westpac share price now fully valued?

Motley Fool contributor James Mickleboro has positions in Westpac Banking. 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 Telstra Group. The Motley Fool Australia has recommended Westpac Banking. 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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