Brokers name 2 ASX dividend shares to buy

If you want to add some dividend shares to your portfolio, then you may want to check out the two listed below that brokers rate as buys.

Here’s what they are saying about these dividend shares:

HomeCo Daily Needs REIT (ASX: HDN)

According to a note out of Morgans, its analysts have retained their add rating and $1.56 price target on this convenience-based property company’s shares.

The broker was pleased with HomeCo Daily Needs REIT’s full year results for FY 2022 and believes the company is well-placed to build on this in the coming years. This is thanks to solid demand for its properties and its development pipeline.

Morgans is forecasting dividends of 8.3 cents per share in FY 2023 and 8.7 cents per share in FY 2024. Based on the current HomeCo Daily Needs REIT unit price of $1.29, this will mean yields of 6.4% and 6.7%, respectively.

Medibank Private Ltd (ASX: MPL)

A note out of Citi reveals that its analysts have retained their buy rating and lifted their price target on this private health insurer’s shares to $4.00.

Citi was pleased with Medibank’s full year results and particularly its private health insurance business. It expects the business’ positive performance to continue and is forecasting an outlook of largely stable margins paired with reasonable top line growth.

In addition, it notes that the Medibank Health business is targeting a profit growth rate of at least 15%, which should be supported by higher interest rates.

Overall, while the broker acknowledges that Medibank’s shares are not cheap, it feels that the company’s positive outlook makes them reasonable value at the current level.

Citi is also expecting Medibank’s shares to provide attractive yields in the near term. Its analysts are forecasting fully franked dividends of 15.9 cents per share in FY 2023 and 16.3 cents per share in FY 2024. Based on the current Medibank share price of $3.65, this will mean yields of 4.35% and 4.5%, respectively.

The post Brokers name 2 ASX dividend shares to buy appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Medibank share price dips despite dividend boost
• HomeCo share price slides despite 970% profit boost
• Medibank share price on watch amid ‘standout customer growth’
• How much have Medibank shares paid in dividends over the past 5 years?

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 Scott Phillips.

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