Analysts say these ASX dividend shares are strong buys

Are you searching for ASX dividend shares to buy?

If you are then you may want to check out these two listed below that analysts think are best buys at present.

Here’s what they are saying about them:

Healthco Healthcare and Wellness REIT (ASX: HCW)

The team at Bell Potter has this healthcare and wellness focused property company on its preferred list. It has a buy rating and $1.70 price target on the ASX dividend share.

The broker likes the company due its attractive valuation and huge addressable market. It said:

HCW has underperformed the REIT sector last 3 months (-10% vs. +22% XPJ) following bond yield reversion and is attractively priced at 20% discount to NTA (but only REIT to record flat to positive valuation movement at 1H24) with double digit 3 year EPS CAGR given high relative sector debt hedging and ability to grow its $1bn development pipeline via attractive YoC spread to marginal cost of debt. Longer term, HCW has significant scope for growth with an estimated $218 billion addressable market where an ageing and growing population should underpin long-term sector demand.

Bell Potter is forecasting dividends per share of 8 cents in FY 2024 and 8.3 cents in FY 2025. This equates to dividend yields of 5.6% and 5.8%, respectively.

QBE Insurance Group Ltd (ASX: QBE)

Morgans has insurance giant QBE on its best ideas list with an add rating and $17.96 price target on its shares.

The broker is feeling positive about the company due to rate increases and cost reductions. It said:

With strong rate increases still flowing through QBE’s insurance book, and further cost-out benefits to come, we expect QBE’s earnings profile to improve strongly over the next few years. The stock also has a robust balance sheet and remains relatively inexpensive overall trading on 8x FY24F PE.

Morgans expects this to underpin partially franked dividends of 99 cents per share in FY 2024 and 108 cents per share in FY 2025. This equates to yields of 5.7% and 6.2%, respectively.

The post Analysts say these ASX dividend shares are strong buys 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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