These ASX dividend shares have big yields and bigger upside potential: experts

Are you searching for dividend shares to buy? If you are, then the two named below could be worth a closer look.

Both have been named as buys by brokers and tipped to provide investors with big yields. Here’s what you need to know about them:

South32 Ltd (ASX: S32)

The first ASX dividend share for income investors to consider is South32.

It could be a buy according to analysts at Morgans, which believe the mining giant is a great option due to its “clear exposure to a recovery scenario for China growth.” The broker also likes the miner thanks to its portfolio transformation and strong balance sheet. The latter is seen as “supporting potential for further M&A.”

Morgans has an add rating and $5.30 price target on South32’s shares.

As for dividends, the broker is expecting South32 to pay fully franked dividends per share of 23 cents in FY 2023 and 21.6 cents in FY 2024. Based on the current South32 share price of $4.64, this will mean yields of 5% and 4.7%, respectively.

Universal Store Holdings Ltd (ASX: UNI)

Another ASX dividend share for income investors to consider is Universal Store.

This retailer, known for the Universal Store and Thrills brands, has been named as a buy by analysts at Goldman Sachs. The broker believes the company is well-placed to benefit from “a strong outlook for Gen-Z spending” and its ongoing store roll-out.

Goldman Sachs has a buy rating and $7.55 price target on its shares.

In respect to dividends, the broker is expecting fully franked dividends of 27.2 cents in FY 2023 and 29.9 cents in FY 2024. Based on the latest Universal Store share price of $5.64, this equates to yields of 4.8% and 5.3%, respectively.

The post These ASX dividend shares have big yields and bigger upside potential: experts 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 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.

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