Experts say these 2 ASX dividend shares are buys

If you’re aiming to lift 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:

National Australia Bank Ltd (ASX: NAB)

The first ASX dividend share that could be a good option right now for income investors is this banking giant.

NAB appears well-placed to profit in the current environment with rates rising and its overweight exposure to commercial lending.

It is because of the latter that Goldman Sachs is positive on the bank. It sees “volume momentum over the next 12 months as favouring commercial volumes over housing volumes and NAB provides the best exposure to this thematic.”

The broker currently has a buy rating and $34.63 price target on the bank’s shares.

In addition, Goldman is expecting some attractive dividend yields from NAB’s shares. It is forecasting a $1.50 per share dividend in FY 2023 and then a $1.70 per share dividend in FY 2024. Based on the current NAB share price of $30.24, this will mean fully franked yields of 5% and 5.6%, respectively.

South32 Ltd (ASX: S32)

It isn’t just NAB that potentially offers decent upside and attractive yields. The same is being said about South32.

The diversified mining and metals company, which has operations spanning the likes of alumina, aluminium, copper, energy and metallurgical coal, manganese, nickel, silver, and zinc, has been tipped as a buy by analysts at Citi.

Following the release of South32’s full year results, the broker commented that its “costs increases are modest; [and it is] still a cheap(ish) FY24 recovery play.”

Citi has a buy rating and $4.65 price target on the company’s shares.

As for dividends, the broker is forecasting a 28 cents per share dividend in FY 2023 and then a 34 cents per share dividend in FY 2024. Based on the current South32 share price of $4.14, this will mean fully franked yields of 6.8% and 8.2%, respectively.

The post Experts say these 2 ASX dividend shares are buys appeared first on The Motley Fool Australia.

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More reading

• Why ASX bank shares are more likely to slowly grind lower than crash, despite famed Wall Street bear saying it’s time to short them
• Are NAB shares worth buying in September?
• Is this why the Macquarie share price was ‘steaming ahead’ on Friday?
• Here are the 3 most heavily traded ASX 200 shares on Friday
• Why is the ASX 200 diving 2% on Tuesday?

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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