Brokers name 2 ASX dividend shares to buy with 4%+ yields

If you’re wanting to boost your income with some dividend shares, then you might want to consider the two listed below.

Here’s what you need to know about these dividend shares:

Elders Ltd (ASX: ELD)

The first ASX dividend share to look at is Elders. It is an agribusiness company that provides a range of services to rural and regional customers across the Australia/New Zealand region.

Elders has been a very strong performer this year. For example, during the first half of FY 2022, the company reported an 80% increase in first-half EBIT to $132.8 million.

Since then, however, the Elders share price has pulled back materially. The team at Goldman Sachs believes this has created a buying opportunity. Particularly given the long term structural growth opportunities still in front of the company.

Last week Goldman reiterated its conviction buy rating with a $21.00 price target on its shares.

As for dividends, the broker is forecasting dividends per share of 50 cents in FY 2022 and 53 cents in FY 2023. Based on the current Elders share price of $12.00, this implies attractive yields of 4.15% and 4.4%, respectively.

South32 Ltd (ASX: S32)

If you don’t mind investing in the resources sector, then South32 could be an ASX dividend share to buy.

It is a diversified mining and metals company with operations spanning alumina, aluminium, bauxite, copper, energy and metallurgical coal, lead, manganese, nickel, silver, and zinc.

It has been generating bumper free cash flow this year thanks to the strong demand and favourable prices it is experiencing for its products. Pleasingly, this is expected to continue in the coming years and underpin big dividends.

Citi, for example, is forecasting a 38 cents per share dividend in FY 2022 and then a 40 cents per share dividend in FY 2023. Based on the current South32 share price of $3.83, this will mean yields of 10% in both years.

Citi also sees plenty of upside for its shares with its buy rating and $5.50 price target.

The post Brokers name 2 ASX dividend shares to buy with 4%+ yields appeared first on The Motley Fool Australia.

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More reading

• Brokers name 3 ASX shares to buy today
• Top broker predicts 50% upside for South32 share price. Here’s why
• Why Goldman is tipping 80% upside for the Elders share price
• 5 things to watch on the ASX 200 on Friday
• Here are the 3 most heavily traded ASX 200 shares on Wednesday

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 recommended Elders Limited. 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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