If you’re looking for dividends shares with big yields, then you may want to look at the ones listed below.
Here’s why analysts at Morgans rate these high yield dividend shares as buys:
Adairs Ltd (ASX: ADH)
The first high yield ASX dividend share for investors to consider is Adairs. It is the leading furniture and homewares retailer behind the online-only Mocka brand, the recently acquired Focus on Furniture brand, and the eponymous Adairs brand.
These brands give Adairs a strong position in a category which is benefitting from the shift online and structurally higher spending on the home relative to pre-COVID levels.
And while FY 2022 will be a tough year because of COVID headwinds, the team at Morgans expect a swift rebound in FY 2023.
It commented: “In FY23, we expect Focus to have bedded down and to have started a strategy of improving store economics while expanding its footprint. We expect the NDC [national distribution centre} to be up and running and delivering efficiencies. We expect Mocka to be making its first steps towards an omni-channel strategy. These factors underpin an expectation of positive earnings growth in FY23 and FY24, which we do not think are reflected in the multiple. ADD.”
Morgans currently has an add rating and $3.50 price target on its shares. As for dividends, its analysts are forecasting fully franked dividends of 19 cents per share in FY 2022 and 26 cents per share in FY 2023.
Based on the current Adairs share price of $2.76, this will mean yields of 6.9% and 9.4%, respectively, over the next couple of years.
Westpac Banking Corp (ASX: WBC)
Another high yield ASX dividend share to consider buying is Westpac. This banking giant’s shares have come under pressure recently due to margin weakness and cost cutting doubts.
The team at Morgans is also positive on Australia’s oldest bank and see the recent share price weakness as a buying opportunity.
Earlier this week it said: “WBC is our preferred major bank. We believe WBC offers the most compelling valuation of the major banks. In terms of quality of overall risk profile, we believe WBC is a close second to CBA. On credit risk, we believe WBC is positioned relatively defensively due to its loan book being more skewed to Australian home lending.”
Morgans currently has an add rating and $29.50 price target on the bank’s shares.
In respect to dividends, the broker has pencilled in fully franked dividends per share of $1.19 in FY 2022 and then $1.60 in FY 2023. Based on the current Westpac share price of $21.96, this will mean yields of 5.4% and 7.3%, respectively.
The post Broker names 2 high yield ASX dividend shares to buy right now appeared first on The Motley Fool Australia.
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Motley Fool contributor James Mickleboro owns Westpac Banking Corporation. 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 recommended Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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