Forget Westpac and buy these ASX dividend shares

With Westpac Banking Corp (ASX: WBC) shares hitting a new 52-week high this week, there’s a lot less value on the table now for investors than there was a few months ago.

In fact, almost all major brokers have price targets that are now comfortably below where the ASX bank share trades.

As a result, income investors may get a better risk/reward from other ASX dividend shares. But which alternatives could be buys instead of Westpac?

Listed below are two dividend options that broker rate as top buys this month:

Rio Tinto Ltd (ASX: RIO)

Goldman Sachs thinks that this mining giant could be a top option for investors right now. It has a buy rating and $138.30 price target on the miner’s shares.

As for dividends, the broker is forecasting fully franked dividends per share of US$4.39 (A$6.75) in FY 2024 and then US$4.61 (A$7.09) in FY 2025.

Based on the latest Rio Tinto share price of $124.77, this will mean yields of approximately 5.4% and 5.7%, respectively.

Universal Store Holdings Ltd (ASX: UNI)

The team at Morgans continue to see a lot of value in youth fashion retailer Universal Store and have named it as an ASX dividend share to buy. Particularly given that the “core youth consumer appears to be picking up.”

The broker has an add rating and $5.65 price target on its shares.

In addition, Morgans is forecasting some big fully franked dividend yields in the near term. It expects the company to be in a position to pay dividends per share of 26 cents in FY 2024 and 29 cents in FY 2025. Based on the current Universal Store share price of $4.80, this will mean yields of 5.4% and 6%, respectively.

The post Forget Westpac and buy these ASX dividend shares appeared first on The Motley Fool Australia.

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More reading

• Key takeouts for ASX shares this earnings season: CBA analysis
• 5 things to watch on the ASX 200 on Tuesday
• Want to bank the Rio Tinto dividend? You’ll need to be fast!
• Seeking retirement income from ASX bank shares at 52-week highs? What I’d buy instead
• Is it too late to buy Westpac shares at a fresh 52-week high?

Motley Fool contributor James Mickleboro has positions in Universal Store and Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. 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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