Buy these quality ASX dividend shares with 5%+ yields

Looking for big dividend yields? If you are, then it could be worth checking out the ASX dividend shares listed below.

Here’s what analysts are forecasting for them:

Dexus Convenience Retail REIT (ASX: DXC)

The first ASX dividend share that has been tipped to provide investors with big yields is the Dexus Convenience Retail REIT. It is a convenience retail and service station property company.

Bell Potter likes the company due to its attractive valuation and strong tenant base. It explains:

DXC is a convenience retail / service station REIT with a network of over 100 assets across the country predominantly leased to institutional and strong covenant tenants including Chevron, Viva, EG, Mobil and 7-Eleven. DXC trades at a circa 34% discount to stated NTA which we think is overly punitive for a sub-sector where there is clear price discovery (double digit number of asset sales for DXC at a blended 2-3% discount to book, and 65 market transactions in FY23), and investors for commercial real estate have a clear preference for smaller cheque size assets.

As for income, the broker is forecasting dividends per share of 20.9 cents in FY 2024 and 20.5 cents in FY 2025. Based on its current share price of $2.54, this equates to yields of 8.2% and 8.1%, respectively.

Bell Potter has a buy rating and $2.85 price target on its shares.

Transurban Group (ASX: TCL)

Another ASX dividend share that could offer generous yields in the coming years is toll road giant Transurban.

Citi is a fan of the CityLink and Cross City Tunnel owner. In fact, it suspects that things could be going better than expected and sees scope for dividends ahead of guidance. It said:

We believe TCL’s FY24 DPS guidance of 62c is conservative and we forecast DPS of 63.4c given strong toll price growth, traffic growth on new road completions and a slower increase in debt costs in FY24 given a small proportion (c. 3%) of the debt book is maturing this year TCL is currently trading in-line with historic EV/EBITDA multiples at 22.5x, but we see upside given the strong EBITDA growth outlook (c.12% CAGR between Fy24-FY26). Retain Buy

Citi is forecasting dividends per share of 63 cents in FY 2024 and then 65 cents in FY 2025. Based on the current Transurban share price of $13.06, this will mean yields of 4.8% and 5%, respectively.

The broker currently has a buy rating and $15.90 price target on its shares.

The post Buy these quality ASX dividend shares with 5%+ yields appeared first on The Motley Fool Australia.

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Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 positions in and has recommended Transurban 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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