Are you looking for some dividend options for your portfolio? Then check out the two ASX shares listed below that Goldman Sachs rates highly.
Here’s why these ASX dividend shares have been tipped to as buys:
Scentre Group (ASX: SCG)
The first ASX dividend share to look at is Scentre. It is the owner and operator of Australia’s leading shopping centre portfolio. Scentre has over $50 billion of retail real estate assets under management across 42 Westfield shopping centres.
While Scentre has been hit hard by the pandemic, the team at Goldman Sachs sees the company as a top reopening play.
Goldman Sachs commented: “Prior to the snap lockdown restrictions, sales metrics showed signs of improvement along with a pick-up in leasing momentum which we expect to continue as restrictions continue to ease and customer visitations continue to rebound.”
And with 70%+ of its base rental income subject to inflation-linked escalation, the broker believes that Scentre is well-placed to benefit from rising inflation.
As for dividends, Goldman is forecasting dividends of ~14 cents per share in FY 2021 and then 15.9 cents per share in FY 2022. Based on the latest Scentre share price of $2,88, will mean yields of 4.9% and 5.5%, respectively.
Goldman has a buy rating and $3.47 price target on the company’s shares.
Suncorp Group Ltd (ASX: SUN)
Another ASX dividend share that could be in the buy zone is Suncorp. Through its numerous brands, for over a century Suncorp has been building futures and protecting what matters by offering insurance, banking, and wealth products and services.
This has allowed the company to carve out a strong market position in Australia, which looks unlikely to change in the foreseeable future.
Goldman Sachs is positive on Suncorp’s future and has a buy rating and $13.74 price target on its shares.
It commented: “While it is now harder to argue that SUN is cheap, we have nonetheless maintained our Buy rating, where we see good momentum in the business, plus near-term earnings risks as skewed positively.”
The broker is expecting some generous dividends in the near term. It has pencilled in fully franked dividends per share of 61 cents in FY 2022 and 73 cents in FY 2023. Based on the current Suncorp share price of $11.16, this will mean yields of 5.5% and 6.5%, respectively.
The post 2 ASX dividend shares Goldman Sachs rates as buys appeared first on The Motley Fool Australia.
Wondering where you should invest $1,000 right now?
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.
*Returns as of January 12th 2022
More reading
- Leading brokers name 3 ASX shares to sell today
- Here are the 3 most heavily traded ASX 200 shares on Wednesday
- Analysts name 2 ASX 200 dividend shares to buy today
- Own Suncorp (ASX:SUN) shares? Here’s what top analysts are saying
- Could this impact the performance of ASX 200 banks more than interest rates in 2022?
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 Bruce Jackson.
from The Motley Fool Australia https://ift.tt/7Y5VkAdFr
Leave a Reply