Analysts say these ASX dividend shares can boost your passive income

If you’re looking for dividend shares to buy to boost your passive income, then you may want to look at the two listed below.

Here’s why analysts rate these ASX dividend shares highly:

South32 Ltd (ASX: S32)

The first ASX dividend share that could give your passive income a big boost is mining giant South32.

Citi is positive on the company and believes it could provide investors with very big dividend yields in the near term. It recently said:

1H FY23 profit of US$560m was better than expected. Importantly, FY23 prodn and cost guidance was maintained. FY24 prodn guidance points to modestly higher output in FY24. […] S32 now trades at 0.94x NPV vs RIO at 1.0x and FMG 1.3x. We raise our TP to $5.05 and stay Buy rated. We believe S32 has not yet run to full valuation levels trading on FY24E EV/EBITDA of 4x vs peers at >5x

As for dividends, the broker is forecasting fully franked dividends of 28 cents per share in FY 2023 and 32 cents per share in FY 2024. Based on the current South32 share price of $4.12, this will mean yields of 6.8% and 7.8%, respectively.

Citi has a buy rating and $5.05 price target on South32’s shares.

Woolworths Limited (ASX: WOW)

Another ASX dividend share that has been named as a buy is Woolworths.

It is the retail giant behind Woolworths supermarkets and Big W, among others.

Goldman Sachs is positive on the retailer due to its strong customer loyalty and omni-channel advantage. It explained:

We are Buy rated (on Conviction List) on the stock as we believe the business has one of the highest consumer stickiness and loyalty among peers, and hence has strong ability to drive market share gains via its omni-channel advantage, as well as pass through any cost inflation to protect its margins, beyond market expectations.

In respect to dividends, Goldman is forecasting fully franked dividends of $1.06 per share in FY 2023 and $1.14 per share in FY 2024. Based on the current Woolworths share price of $37.46, this will mean yields of 2.8% and 3%, respectively.

Goldman currently has a conviction buy rating and $41.00 price target on the company’s shares.

The post Analysts say these ASX dividend shares can boost your passive income appeared first on The Motley Fool Australia.

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More reading

• Want to boost your portfolio with ASX blue chips? Analysts say buy these shares
• Did you buy $10,000 of Woolworths shares in 2018? If so, here’s how much passive income you’ve banked
• Give yourself a passive income boost with these growing ASX 200 dividend shares: analysts
• ‘Increased confidence’: Alphinity reveals 2 ASX 200 shares it just bought
• ‘Increasing demand’: Expert picks 2 ASX 200 mining shares to buy (not BHP)

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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