Category: Stock Market

The National Australia Bank Ltd (ASX: NAB) share price has come under pressure this month following a market selloff.

Since the start of June, the banking giant’s shares have tumbled 14%.

While this decline is disappointing, it has made its dividend yield even more attractive for income investors.

In light of this, let’s take a look to see what analysts are expecting from NAB’s dividends in the coming years.

Where are NAB’s dividends heading?

According to a note out of Goldman Sachs, its analysts are expecting consistent dividend growth from NAB through to FY 2024.

In FY 2021, NAB rewarded its shareholders with a fully franked $1.27 per share dividend. Goldman expects this to be increased to $1.50 per share in FY 2022. Based on the current NAB share price of $26.87, this implies a 5.6% dividend yield.

The broker is then forecasting a 15 cents per share increase to a fully franked $1.65 in FY 2023. This will mean an attractive yield of 6.15%.

Finally, in FY 2024, the broker is expecting NAB’s dividend to increase to $1.72 per share. This equates to a fully franked 6.4% yield.

Are its shares in the buy zone?

The good news for investors is that as well as predicting some juicy yields, Goldman sees plenty of upside for the NAB share price from current levels.

The note reveals that its analysts currently have a conviction buy rating and $34.17 price target on the bank’s shares. This suggests that there is potential upside of 27% for investors.

All in all, according to Goldman Sachs, the total potential return on offer with NAB’s shares over the next 12 months is a sizeable ~33%.

The post Here’s the NAB dividend forecast through to 2024 appeared first on The Motley Fool Australia.

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More reading

• ASX 200 bank shares tumble: Citi says time to buy
• Top brokers name 3 ASX shares to buy next week
• The NAB share price is down 10% this week: Macquarie says it’s a buy
• Why are ASX 200 bank shares rebounding on Friday?
• What exactly is going on with ASX 200 bank shares and the RBA rate rise?

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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The large falls being seen across the ASX share market could be opening up some big opportunities for some of these businesses to rebound, according to experts.

It’s important to note that just because something has fallen doesn’t mean it’s definitely going to go back up to the price it was at before the fall. There’s also no telling when investors will regain optimistic sentiment about the ASX share market.

However, experts come up with price targets – that’s where they think the share price will be in 12 months.

With that in mind, here are two ASX shares that are rated as buys with a possible upside of more than 100% if brokers’ price targets end up being accurate.

Step One Clothing Ltd (ASX: STP)

Step One describes itself as a direct-to-consumer online retailer of innerwear. The ASX share says it offers a range of “quality, organically grown and certified, sustainable and ethically manufactured innerwear that suits a broad range of body types”. It operates in Australia, the US, and the UK.

While there is the ongoing market focus on inflation and interest rates, the company recently gave a trading update which included a reduction of guidance because of “difficult trading conditions”. The Step One share price plunged after this announcement.

Revenue is now expected to grow by between 15% to 20%, down from guidance of 21% to 25% growth. Projected pro forma earnings before interest, tax, depreciation and amortisation (EBITDA) is expected to be between $7 million to $8 million, down from $15 million.

The company pointed to lower growth than expected in the USA and UK, though Australia continued to produce a “strong contribution margin”, underpinning revenue growth. Profitability is being hurt by higher marketing costs, as well as higher factory and logistics costs.

The broker Morgans thinks that Step One is a buy, with a price target of $0.60. This suggests an upside of around 160%.

However, the broker acknowledged the difficulties the ASX share revealed in its trading update. But, Morgans is optimistic Step One will keep generating cash flow and making a profit during this period.

The company says it will keep focusing on growth by expanding its product lines and trying to grow its USA and UK businesses.

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster is a leading online retailer of homewares and furniture.

It’s currently rated as a buy by the broker Credit Suisse, with a price target of $9.59. That implies a possible rise of around 170%.

The broker noted the trading update that the business released in early May 2022. Temple & Webster said revenue for the period 1 January 2022 to 30 April 2022 was up 23% year on year and up 116% over two years.

The business is investing in various areas of its operations to improve the company. These include data, personalisation, augmented reality, artificial intelligence, and logistics, as well as its private label offering. Management said the business is also open to making acquisitions.

At the current time, Temple & Webster is investing in a new website called ‘The Build’ which sells home improvement products.

Credit Suisse also thinks the company can grow its market share over time with its investments.

The post Experts think these 2 ASX shares have more than 100% upside after the plunge appeared first on The Motley Fool Australia.

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More reading

• Waiting to start investing in ASX shares? Today could be a brilliant time to do it
• Analysts are tipping these ASX growth shares as buys
• Why did the Temple & Webster share price plunge 10% today?
• Do experts think the Temple & Webster share price is a massive opportunity?
• Expert reveals what to do with 4 ASX shares in trouble

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Temple & Webster Group Ltd. The Motley Fool Australia has recommended Temple & Webster Group Ltd. 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened 

Tesla‘s (NASDAQ: TSLA) stock was moving higher today, likely as investors processed an analyst’s recent upgrade for the electric vehicle stock and after Cathie Wood-led Ark Investment Management added more Tesla shares to its portfolio yesterday. 

The EV stock was up by 2.5% as of 2:55 p.m. ET Tuesday. 

So what 

Yesterday, RBC Capital analyst Joseph Spak upgraded Tesla’s stock to outperform from sector perform and put a price target on the company’s shares of $1,100.  

Spak thinks that Tesla has a competitive advantage over its peers because of its supply chain and vertical integration. He said in the investor note that “The company’s early focus on vertical integration (not just batteries/raw materials but also motors, semis, software) is likely to pay off.” 

Spak also thinks that Tesla’s automotive margins could be higher than 30% in the second half of the year as the average selling price for its vehicles increases and the company’s Shanghai, Berlin, and Texas plants boost vehicle production. 

In addition to the analyst’s positive comments, investors may be reacting to the fact that Ark Investment once again bought up more shares of Tesla. Ark Invest bought 2,800 Tesla shares yesterday, worth about $1.8 million, which marked the fifth time this month that the fund has added more Tesla shares to its portfolio.

Now what 

Investors are worried about rising inflation, supply chain issues, and the potential for an economic slowdown in the U.S., all of which has sent Tesla’s share price on a wild ride over the past year. 

But today’s gains show that despite all of the volatility in the market, many investors still have a long-term perspective on the EV maker. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Tesla shares were rising today appeared first on The Motley Fool Australia.

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Chris Neiger has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Tesla. 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.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The heavy declines of the ASX share market are having a big impact on share prices. Not only is this making S&P/ASX 200 Index (ASX: XJO) shares cheaper, but it’s also boosting the potential dividend yield from ASX dividend shares.

Investors have been hitting the sell button as inflation soars and worries heighten about how central banks will respond to bring this under control.

But, with the heightened fears come potential buying opportunities. These two ASX 200 dividend shares look really good to me at these lower prices.

Wesfarmers Ltd (ASX: WES)

Wesfarmers is one of the most diverse businesses in the ASX 200, in my opinion.

Not only does it have its retail operations of Bunnings, Kmart, Officeworks, Target, and Catch, but it also has businesses in other sectors, including industrial, chemicals, energy, fertiliser, lithium, healthcare, and stakes in other businesses.

There is a potential danger that inflation and other impacts could hurt Wesfarmers’ retail earnings in the short term. Management said it wants to be a price leader for customers amid this inflation, which may indicate lower margins in the shorter term.

However, I think this economic situation will eventually pass, just like other bumpy economic periods in the past.

Governor Philip Lowe said last night the Reserve Bank of Australia is expecting inflation to peak at the end of 2022, with inflation “clearly dropping” into the second half of next year, with a lower rate of inflation in the first quarter. With that in mind, I think the lower Wesfarmers share price represents good value – it’s down 30% in 2022.

Bunnings is a high-quality business, in my opinion. It generated around 70% of Wesfarmers’ FY22 first-half underlying earnings before tax (EBT). It also made a return of capital of 79%, meaning that it makes a lot of profit for the amount of money invested in Bunnings.

Wesfarmers could go hunting for potential acquisition opportunities during this period by using its balance sheet flexibility and boost its long-term prospects further. The company generated $1.6 billion of operating cash flow in HY22, allowing it to pay dividends and invest substantially into the business for more growth.

Using estimates from CMC, the Wesfarmers share price is valued at 20x FY23’s estimated earnings with a projected grossed-up dividend yield of 6.1%.

Washington H. Soul Pattinson and Co Ltd (ASX: SOL)

Soul Pattinson is one of my favourite ASX dividend shares and I recently bought more shares for my portfolio because I thought it looked more attractive after the decline — it’s down 23% this year to date.

It operates as an investment house. The business owns a large portfolio of ASX shares including TPG Telecom Ltd (ASX: TPG), Brickworks Limited (ASX: BKW), New Hope Corporation Limited (ASX: NHC), Commonwealth Bank of Australia (ASX: CBA), Macquarie Group Ltd (ASX: MQG), Pengana Capital Group Ltd (ASX: PCG), and Tuas Ltd (ASX: TUA). These are just some of the biggest positions in the portfolio, but there are many more holdings.

The ASX 200 dividend share also has a growing portfolio of private business investments. Examples of those private businesses include electrical parts business Ampcontrol, swimming school business Aquatic Achievers, an agriculture portfolio, and financial service businesses.

Soul Pattinson’s diversified portfolio lowers the risk of the overall business, in my opinion. It also gives management a broad range of target areas to look for investment opportunities.

The company has tried to build a defensive portfolio that can continue generating attractive cash flow during downturns, which can also fund dividends.

Soul Pattinson has grown its annual ordinary dividend to shareholders every year since 2000.

With the last 12 months of dividends totalling 65 cents per share, the ASX 200 dividend share has a trailing grossed-up dividend yield of 3.9%.

The post Why I think these 2 ASX 200 dividend shares offer great buying right now appeared first on The Motley Fool Australia.

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More reading

• 2 ASX companies busted for sneaky facial recognition on customers
• Warning: 1970s inflation is returning. Expert reveals what to do
• 5 things to watch on the ASX 200 on Wednesday
• Top ASX dividend shares to buy in June 2022
• The ASX 200 share that just got upgraded to buy amid the market carnage

Motley Fool contributor Tristan Harrison has positions in Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Brickworks, Washington H. Soul Pattinson and Company Limited, and Wesfarmers Limited. The Motley Fool Australia has recommended Macquarie Group Limited and TPG Telecom Limited. 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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The St Barbara Ltd (ASX: SBM) share price tanked to a 52-week low of $1.0775 yesterday.

This is a sharp contrast to when the gold miner’s shares reached a year-to-date high of $1.64 on 14 March.

However, after heavy falls on the ASX on Tuesday, St Barbara shares closed 1.30% lower to $1.135.

What happened to St Barbara shares?

The general market sentiment remains negative amid sky-high inflation and possible bigger rate hikes.

St Barbara shares have been caught up in the whirlwind along with other gold resource companies.

As such, Northern Star Resources Ltd (ASX: NST) shares touched a multi-year low of $7.69 yesterday.

On the other hand, shares in Australia’s largest gold miner Newcrest Mining Ltd (ASX: NCM) are down almost 5% in a week.

In addition, the price of gold has tumbled 3.5% from last Friday to US$1,810 per ounce at the time of writing. This is because investors are shifting their assets from gold to government bonds as the yields become more attractive.

Nonetheless, this could weigh on St Barbara’s margins as gold losses its value.

Can St Barbara shares make a comeback?

According to ANZ Share Investing, one broker gave its take on the St Barbara share price in early May.

Following the company’s third-quarter results, Macquarie slashed its price target by 6% to $1.70 per share. This represents an upside of close to 50% based on the current share price.

The broker believes the St Barbara share price is significantly undervalued at this point in time.

About the St Barbara share price

Over the past 12 months, the St Barbara share price has dropped by 39%.

Year to date, its shares are down 22%.

St Barbara has a price-to-earnings (P/E) ratio of 8.76 and commands a market capitalisation of roughly $925.86 million.

The post Can the St Barbara share price recover its losses in 2022? appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Friday
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Motley Fool contributor Aaron Teboneras has positions in Northern Star Resources Limited. 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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The Dicker Data Ltd (ASX: DDR) share price tumbled to a year-to-date low of $10.87 yesterday before climbing back up.

Widespread turmoil across the ASX on the back of Monday’s heavy losses on Wall Street sent investors packing.

Shares in the hardware, software and cloud distributor defied the sell-off to finish 0.61% higher to $11.57. However, when factoring in the past month, its shares have fallen 8%.

For context, the S&P/ASX 200 Index ended the day down 3.55% to 6,686 points.

Let’s take a look at what’s weighing on Dicker Data shares in recent memory.

What’s driving Dicker Data shares lower?

A number of factors outside the company’s control have led the Dicker Data share price to sink since 24 March.

Russia’s attack on Ukraine continued to spook international markets as sanctions were handed down on the Kremlin.

Subsequently, oil and gas prices rose and global markets began to tank as this would stall worldwide economic growth.

While this didn’t have anything to do with Dicker Data directly, its shares weren’t spared, falling to $12.11 on 9 May.

Furthermore, the latest inflation figures and potentially aggressive rate hikes in 2022 are having a detrimental effect on international markets.

The S&P/ASX All Technology Index (ASX: XTX) is down 7% in a month, and 36% for the current calendar year.

While Dicker Data reported strong growth in its first-quarter update on 11 May, this hasn’t been enough to stem the bloodshed.

If the ASX plunges further, it’s most likely that the IT distributor’s shares will follow suit.

Dicker Data share price summary

In 2022, Dicker Data shares have lost around 22% due to a severe downturn across global markets.

Although, when looking over the past 12 months, its shares are up 11% in that time frame.

Dicker Data commands a market capitalisation of roughly $1.99 billion and has a trailing dividend yield of 4%.

The post The Dicker Data share price is trading at YTD lows. Here’s why appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has positions in Dicker Data Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Dicker Data Limited. The Motley Fool Australia has positions in and has recommended Dicker Data Limited. 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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Wesfarmers Ltd (ASX: WES) and JB Hi-Fi Limited (ASX: JBH) have been using facial recognition on unknowing customers in their stores.

That’s the finding from consumer advocacy group Choice, which investigated 25 Australian retailers for their privacy credibility.

The enquiry found Wesfamers-owned retailers Kmart and Bunnings, plus JB Hi-Fi’s The Good Guys appliance outlets, all used the identification technology on anyone who walked through their doors.

According to Choice consumer data spokesperson Kate Bower, the practice is “a completely inappropriate and unnecessary use of the technology”.

“Using facial recognition technology in this way is similar to Kmart, Bunnings, or The Good Guys collecting your fingerprints or DNA every time you shop,” she said.

“Businesses using invasive technologies to capture their customers’ sensitive biometric information is unethical and is a sure way to erode consumer trust.”

Choice announced that it would dob in the retailers to the Office of the Australian Information Commissioner (OAIC) to explore possible breaches of the Privacy Act.

The consumer group also urged the federal government to regulate facial recognition.

Wesfarmers and JB Hi-Fi had not responded to enquiries from The Motley Fool at the time of writing.

Harvested biometric data includes children

What made it worse, according to Bowers, was that 76% of Australians didn’t even realise their unique facial data was harvested.

“Choice observed that Kmart and Bunnings display small signs at the entrance of stores where the technology is in use,” she said.

“However, discreet signage and online privacy policies are not nearly enough to adequately inform shoppers that this controversial technology is in use.”

Bowers added that the biometric data collected included infants and children.

“Choice is concerned that Australian businesses are using facial recognition technology on consumers before Australians have had their say on its use in our community.”

“With the government currently undergoing a review of the Privacy Act, now is the perfect time to strengthen measures around the capture and use of consumer data.”

Wesfarmers shares have dropped more than 30% since the start of the year, while JB Hi-Fi has seen its stock price fall almost 20%.

The post 2 ASX companies busted for sneaky facial recognition on customers appeared first on The Motley Fool Australia.

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More reading

• Why are these ASX 200 retail shares lagging the market today?
• Should you buy these top blue chip ASX 200 shares after the market selloff?
• Should income investors buy Wesfarmers shares for the dividends?
• How much further could the Wesfarmers share price fall? Here’s what the experts reckon
• Experts name 2 ASX dividend shares for income investors to buy now

Motley Fool contributor Tony Yoo 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 positions in and has recommended Wesfarmers Limited. 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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If you’re wanting to load up on blue chip shares following the market selloff, then look no further.

Listed below are two ASX 200 blue chips that Goldman Sachs rates as buys. Here’s what it is saying:

REA Group Limited (ASX: REA)

The first blue chip ASX 200 share for investors to consider buying is REA. It is the operator of realestate.com.au, which is the dominant player in real estate listings in the Australian market.

It could be a top option for investors due to the recent pullback in its share price, which has come despite management’s positive outlook commentary. REA recently stated that it remains confident it can achieve double digit revenue/EBITDA growth through the cycle.

This went down well with the team at Goldman Sachs, which has a buy rating and $167.00 price target on its shares. Based on the current REA share price of $103.44, this implies potential upside of 61% for investors.

Goldman said:

Overall, we believe these commitments illustrate the pricing power of REA, pipeline of value-add products, and its ability to offset any potential macro weakness, and now forecast FY22-24E Sales growth of 10% despite challenging volume listings.

Woolworths Group Ltd (ASX: WOW)

Another ASX 200 blue chip share that could be in the buy zone is Woolworths. It is of course the retail giant behind the eponymous Woolworths supermarket and Big W brands.

The team at Goldman Sachs is very positive on the company’s outlook even in the current environment. It recently reiterated its buy rating and $41.70 price target on the company’s shares. Based on the current Woolworths share price of $33.83, this implies potential upside of 23% for investors.

Goldman is forecasting solid sales and earnings growth through to FY 2024. It explained:

We are encouraged by the resilience and superior operations of WOW and reiterate our unchanged FY22-24e Sales and EPS CAGR of 6.9% and 14.9% respectively. We expect this to be driven by high price growth, well protected GPM and slight EBIT margin expansion as COVID costs roll-off and cost efficiencies continue.

The post 2 blue chip ASX 200 shares that Goldman Sachs rates as buys appeared first on The Motley Fool Australia.

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More reading

• 3 ASX shares to pounce on after tax-loss selling: report
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• Here are 2 ASX 50 shares analysts rate as buys
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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 positions in and has recommended Telstra Corporation Limited. 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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The Evolution Mining Ltd (ASX: EVN) share price has been struggling over the past week.

The company’s shares slumped 8.03% between market close on 7 June and 14 June. For perspective, the S&P/ASX 200 Index (ASX: XJO) tumbled 5.77% in the same time frame. The S&P/ASX 200 Materials Index (ASX: XMJ) also descended 6.13% between these dates.

Let’s take a look at what could be ahead for this gold explorer.

Could higher electricity prices be a risk for Evolution?

Macquarie is concerned gold miners including Evolution could be impacted by higher electricity prices.

Analysts named Evolution, Newcrest Mining Ltd (ASX: NCM), Aurelia Metals Ltd (ASX: AMI), and Oz Minerals Limited (ASX: OZL) as facing the “highest earnings risk from surging electricity prices”, The Australian reported.

Macquarie stated rising electricity prices are due to “increased demand, rising fuel costs and unplanned coal generator outages”. Analysts added:

There continues to be upside risk to power prices in eastern states of Australia, adding cost pressures to miners operating on the East Coast of Australia.

Evolution Mining owns four mines in Australia along with a mine in Ontario, Canada. The company has a production guidance of about 650 thousand ounces (koz) of gold for FY22. Major shareholders include Van Eck, BlackRock, Fidelity, and Australian Super.

The Evolution Mining share price fell 4.86% to $3.33 on Tuesday alone. For perspective, the ASX 200 also shed nearly 4% on Tuesday, while the ASX 200 Materials Index slid 4.44%.

This drop followed Wall Street’s S&P 500 market falling into a bear market on Friday night amid higher inflation. The US Fed reserve is reportedly considering raising rates by 0.75%, sparking fears of a recession.

Gold prices also hit a nearly four-week low on the back of the strong US dollar, CNBC reported. City Index senior market analyst Matt Simpson said:

Gold has faced selling pressure as investors have decided to either go to cash, or offload gold to attend margin calls across other markets.

Evolution Mining share price snapshot

The Evolution Mining share price has plunged 34% in the past 12 months, while it has sunk 18% in the year to date.

For perspective, the benchmark S&P/ASX 200 Index (ASX: XJO) has shed around 9% in a year.

Evolution Mining has a market capitalisation of just over $6 billion based on its current share price.

The post Evolution Mining share price dips 8% in a week as Macquarie flags ‘earnings risk’ from energy crisis appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Wednesday
• 5 things to watch on the ASX 200 on Tuesday
• Why Block, Evolution, Fortescue, and Magellan shares are sinking today
• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Wednesday

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 recommended Macquarie Group Limited. 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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If you’re looking for dividend shares to buy then you may want to look at the ones below that brokers are recommending.

Here’s what brokers are saying about these ASX dividend shares:

BHP Group Ltd (ASX: BHP)

The first ASX dividend share to look at is mining giant BHP.

While operating conditions have been tough this year due to labour shortages and rising fuel costs, this is being offset by sky high commodity prices. So much so, BHP is being tipped to generate huge sums of free cash flow again in FY 2022.

And due to the strength of its balance sheet, the majority of this free cash flow looks set to be returned to shareholders through dividends.

Goldman Sachs is very positive on the company and recently put a buy rating and $51.20 price target on the Big Australian’s shares. Its analysts note that BHP has an “attractive valuation & FCF, and upside from ~US$20bn Copper growth pipeline.”

As for dividends, the broker is forecasting fully franked dividend yields of over 10% in FY 2022 and FY 2023.

Telstra Corporation Ltd (ASX: TLS)

Another ASX dividend share for income investors to look at is this telco giant.

After years of struggles, Telstra revealed underlying earnings growth during the first half of FY 2022 thanks to the success of its T22 strategy.

The good news for investors is that Telstra will soon embark on its T25 strategy. While T22 was about transforming the company, T25 has been designed to underpin solid earnings growth.

Analysts at Morgans have been pleased with the company’s plans and have put an add rating and $4.56 price target on its shares.

In respect to dividends, Morgans is forecasting fully franked dividends per share of 16 cents in FY 2022 and FY 2023. Based on the current Telstra share price of $3.75, this will mean yields of 4.25%.

The post 2 top ASX dividend shares to buy according to analysts appeared first on The Motley Fool Australia.

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More reading

• Top ASX dividend shares to buy in June 2022
• Here are the 3 most traded ASX 200 shares on Tuesday
• Why BHP, Block, Harvey Norman, and PointsBet shares are sinking
• Why is the BHP share price sinking 6% today?
• 5 things to watch on the ASX 200 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 positions in and has recommended Telstra Corporation Limited. 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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