These are the best ASX dividend shares to buy: broker

Are you wanting to add some dividend shares to your portfolio this week? If you are, then the two listed below could be worth checking out.

Both have recently been named as best ideas by analysts at Morgans and tipped to provide very attractive yields.

Here’s what you need to know about them:

Dexus Industria REIT (ASX: DXI)

The first ASX dividend share that Morgans has named as a buy is Dexus Industria.

Morgans is a fan of this industrial and office property company. This is due to its belief that Dexus Industria is well-placed for growth thanks to strong demand and its development pipeline. It commented:

DXI’s key industrial markets remain robust with the outlook for solid rental growth backed by strong tenant demand. The development pipeline also provides near and medium term upside potential. A key focus will be the leasing up of the business park assets and a potential divestment could be a positive catalyst. While the portfolio remains well positioned we acknowledge there will be near-term uncertainty around interest rates.

As for dividends, the broker is forecasting dividends per share of 16.4 cents in FY 2023 and 16.6 cents in FY 2024. Based on the current Dexus Industria share price of $3.06, this will mean yields of 5.4% and 5.5%, respectively.

Morgans currently has an add rating and $3.26 price target on the company’s shares.

HomeCo Daily Needs REIT (ASX: HDN)

Another ASX dividend share that Morgans is positive on is HomeCo Daily Needs.

It is a property investment company that focuses on metro-located, convenience-based assets across neighbourhood retail, large format retail, and health and services.

Morgans likes the company due to its high occupancy, long leases, and attractive dividend yield. It said:

HDN’s portfolio is valued at around $4.7bn across +50 assets with exposure to Large Format Retail; Neighbourhood; and Health & Services properties. Over the medium term it expects to reweight towards Neighbourhood. Portfolio metrics are solid: weighted average cap rate 5.3%; weighted average lease expiry 5 years and occupancy 99%. 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 ‘last mile’ logistics, as well as a significant land bank with future development potential (38% site coverage with a ~$500m development pipeline)

In respect to dividends, the broker is 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 $1.32, this will mean dividend yields of 6.3% and 6.5%, respectively.

Morgans has an add rating and $1.52 price target on its shares.

The post These are the best ASX dividend shares to buy: broker appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 2 ASX dividend shares to buy with big yields: Morgans
• Top ASX value shares to buy in February 2023
• These top ASX dividend shares are buys: Morgans

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.

from The Motley Fool Australia https://ift.tt/aWDOPje