Morgans says buy these ASX dividend shares for passive income

If you’re looking for dividend shares to buy this week, then the two listed below could be worth checking out.

Both have been named as buys by analysts at Morgans recently and tipped to provide very attractive yields. Here’s what you need to know about them:

Dexus Industria REIT (ASX: DXI)

The first ASX dividend share that gets the thumbs up from Morgans is Dexus Industria.

It is a real estate investment trust which is primarily invested in high-quality industrial warehouses. At the end of December, the company’s portfolio was valued at $1.6 billion and was located across several major Australian cities

Morgans believes Dexus Industria is well-placed for growth thanks to strong demand in the industrial market. It commented:

DXI’s key industrial markets remain robust with the outlook for solid rental growth backed by strong tenant demand. The development pipeline also provides near and medium term upside potential. A key focus will be the leasing up of the business park assets and a potential divestment could be a positive catalyst. While the portfolio remains well positioned we acknowledge there will be near-term uncertainty around interest rates.

The broker currently has an add rating and $3.37 price target on the company’s shares.

As for dividends, it is forecasting dividends per share of 16.5 cents in FY 2023 and 16.8 cents in FY 2024. Based on the current Dexus Industria share price of $2.69, this will mean yields of 6.1% and 6.3%, respectively.

QBE Insurance Group Ltd (ASX: QBE)

Another ASX dividend share that Morgans is recommending to investors is insurance giant QBE.

The broker is positive on QBE’s outlook and highlights that premium rate increases and higher investment income should support earnings and dividend growth. It commented:

QBE’s FY22 result NPAT (US$770m) was an 18% beat versus consensus, with the 2H22 dividend (A30cps) 11% above consensus. Overall, in our view, this was a very strong FY22 performance versus market expectations. Heading into FY23, the key tailwinds are premium rate increases and higher investment income which remain supportive of earnings growth, as highlighted by QBE expecting a mid-teens ROE versus 10.5% in FY22.

Morgans has an add rating and $16.96 price target on the company’s shares.

In respect to dividends, the broker is expecting an 82 cents per share dividend in FY 2023 and then a 93 cents per share dividend in FY 2024. Based on the latest QBE share price of $14.29, this equates to yields of 5.7% and 6.5%, respectively.

The post Morgans says buy these ASX dividend shares for passive income appeared first on The Motley Fool Australia.

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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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