Analysts say these ASX dividend shares are top buys

Are you looking for some dividend options for your income portfolio this week? If you are, then take a look at the two ASX dividend shares listed below.

Here’s why they have been tipped to as buys by experts:

Dexus Industria REIT (ASX: DXI)

The first ASX dividend share that could be in the buy zone is Dexus Industria.

Dexus Industria, which was formerly known as APN Industria, is an industrial and office property company with a focus on properties that provide functional and affordable workspaces for businesses.

Morgans is positive on the company despite rising funding costs. On Monday, the broker retained its add rating on the company’s shares with a trimmed price target of $3.28.

Its analysts also continue to forecast attractive dividend yields in the near term. For example, the broker is expecting dividends per share of 17.3 cents in FY 2022 and 16.1 cents in FY 2023. Based on the current Dexus Industria share price of $2.87, this will mean yields of 6% and 5.6%, respectively.

Westpac Banking Corp (ASX: WBC)

Another ASX dividend share that could be a good option for income investors is banking giant Westpac.

Australia’s oldest bank is currently going through a major cost cutting programme that aims to reduce its cost base materially in the coming years.

And while the team at Goldman Sachs believe the bank’s targets are too ambitious and won’t be fully achieved, they still expect cost reductions that will be big enough to boost its earnings meaningfully.

In addition, the broker believes Westpac is well-placed to benefit from rising rates. Particularly given the relative lack of domestic deposit repricing that has been seen to date following recent rates cash rate rises.

Goldman has a conviction buy rating and $26.12 price target on the company’s shares.

As for dividends, its analysts are forecasting fully franked dividends per share of 123 cents in FY 2022 and 135 cents in FY 2023. Based on the current Westpac share price of $22.07, this will mean yields of 5.6% and 6.1%, respectively, over the next two financial years.

The post Analysts say these ASX dividend shares are top buys appeared first on The Motley Fool Australia.

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More reading

• Own Westpac shares? This broker expects the bank’s dividends to surge 10% by FY23  
• 2 ASX dividend shares that experts rate as buys
• Can Westpac shares deliver a competitive dividend yield and 20% upside in FY23?
• Broker says Westpac share price ‘offers the most upside of the banks’
• How are ASX 200 bank shares responding to the RBA rate increase?

Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ADAIRS FPO. The Motley Fool Australia has positions in and has recommended ADAIRS FPO. 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 Scott Phillips.

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