Buy NAB and this high yield ASX dividend share: experts

With so many dividend shares to choose from, it can be hard to decide which ones to buy over others.

The good news is that experts have been busy picking out some of the best dividend shares to buy right now.

Two that have been singled out as buys are listed below. Here’s what you need to know about them:

National Australia Bank Ltd (ASX: NAB)

The first dividend share for investors to look at is NAB.

Goldman Sachs is a fan of this big four bank and currently has a buy rating and $34.81 price target on its shares.

Its analysts like NAB due to its exposure to commercial lending, which they expect to perform better than home lending in the current environment. Goldman also highlights the work NAB has done on productivity and cost management and believes it leaves the bank well positioned for an environment of elevated inflationary pressure.

In respect to dividends, Goldman Sachs is expecting NAB to pay fully franked dividends of $1.66 per share in FY 2023 and $1.73 per share in FY 2024. Based on the current NAB share price of $31.79, this means yields of 5.2% and 5.4%, respectively.

Rural Funds Group (ASX: RFF)

Rural Funds could be another top dividend share for income investors to buy. It is an agriculture-focused real estate property trust that owns a diverse portfolio of properties across different geographies and sectors.

Its portfolio includes almond and macadamia orchards, premium vineyards, water entitlements, cropping and cattle farms. These are leased on long term agreements to major players in the industry such as Australia’s largest meat processor, JBS Australia, wine giant Treasury Wine Estates Ltd (ASX: TWE), and leading almond producer Select Harvests Limited (ASX: SHV).

Bell Potter is positive on the company and has a buy rating and $2.75 price target on its shares.

As for dividends, Bell Potter is forecasting 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 $2.46, this represents yields of 4.75% and 5.15%, respectively.

The post Buy NAB and this high yield ASX dividend share: experts appeared first on The Motley Fool Australia.

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More reading

• Investing in ASX 200 bank shares? Here’s the dividend outlook for 2023
• Goldman Sachs names 2 ASX dividend shares to buy now
• Add these ASX shares to your retirement portfolio for growing income: analysts
• ASX passive income: My game plan to reach $30,000 per year
• Can income investors bank on a 6% dividend yield from NAB shares?

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 Rural Funds Group. 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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