If you’re an income investor in search of dividend shares to buy, then you may want to look at the two options listed below.

Both shares are being recommended as buys by the team at Morgans. Here’s what they are saying about these ASX 200 dividend shares:

South32 Ltd (ASX: S32)

The first ASX 200 dividend share that Morgans thinks is in the buy zone is South32. It likes the mining giant due to its attractive valuation and the robust prices it is enjoying across its basket of metals. Morgans notes that the latter is allowing the miner to increase its dividend, upsize its buyback, and strengthen its balance sheet.

While the broker acknowledges that the South32 share price has risen strongly in recent months, it still expects attractive dividend yields in the near future.

Morgans commented: “But despite the increase this share price rise has only matched S32’s earnings growth. S32 is still trading on just 4x EBITDA and with a FCF yield of 11% (vs iron ore peers above 6x and pure base metal producers +10x EBITDA). While ‘late to the party’, we expect S32’s share price to continue to re-rate as it completes its accretive copper acquisition and continues to enjoy cycle high FCF. We maintain our Add rating with S32 a preferred exposure in the mining sector.”

Its analysts are forecasting fully franked dividends of 20.2 cents in FY 2022 and then 18.8 cents in FY 2023. Based on the current South32 share price of $4.57, this will mean yields of 4.4% and 4.1%, respectively.

Morgans has an add rating and $4.90 price target on its shares.

Westpac Banking Corp (ASX: WBC)

Another ASX 200 dividend share that Morgans likes is Westpac. It believes the banking giant’s shares are cheap at the current level and is expecting them to provide a generous yield for investors.

In respect to its valuation, the broker feels the market is pricing Westpac as though it were a value trap. However, it feels its recent update demonstrates that this simply isn’t the case and has retained its add rating and $29.50 price target.

Morgans said: “We believe the trading update supports the view that the challenges facing WBC are not unsurmountable and that the stock should not be priced like a value trap. We believe the update particularly serves to alleviate investor concerns around the cost outlook.”

As for dividends, the broker is forecasting fully franked dividends per share of $1.19 in FY 2022 and then $1.60 in FY 2023. Based on the current Westpac share price of $23.53, this will mean yields of 5% and 6.8%, respectively.

The post Morgans names 2 ASX 200 dividend shares to buy now appeared first on The Motley Fool Australia.

More reading

• This expert says the Westpac (ASX:WBC) share price has 25% upside
• Why ‘dependable and reliable dividend payers’ could be the antidote to current volatility: expert
• Brokers name 3 ASX shares to buy today
• South32 (ASX:S32) share price jumps as profit soars
• Top broker tips South32 (ASX:S32) to deliver 637% jump in half year earnings

Motley Fool contributor James Mickleboro owns Westpac Banking Corporation. 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 Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Westpac Banking Corp (ASX: WBC) share price could have a lot of upside according to one expert.

Westpac is one of the big four ASX banks. It’s now smaller than both Commonwealth Bank of Australia (ASX: CBA) and National Australia Bank Ltd (ASX: NAB). But Westpac remains a bit bigger than Australia and New Zealand Banking Group Ltd (ASX: ANZ).

It has been a tough ride for long-term Westpac shareholders. Over the past five years, Westpac shares have dropped 31%.

However, interestingly, the Westpac share price has jumped 14% since the release of its FY22 first quarter performance. So let’s take a look at some of the highlights of that. It was this update that the broker Morgans got a good look at Westpac.

FY22 first quarter

In early February, Westpac announced that for the three months to 31 December 2021, it generated $1.82 billion of statutory net profit after tax (NPAT). This was an 80% increase on the quarterly average from the second half of FY21.

The headline cash earnings were also up heavily over the quarter, up 74% to $1.58 billion. However, excluding notable items, cash earnings were only up 1%. Investors often like to look at the profit (and direction of profit) to decide what level to value the Westpac share price.

Westpac’s lending was up $5 billion, or 0.7%, in the first quarter. This was across institutional, mortgages and New Zealand.

The net interest margin (NIM) was 1.91%, down 8 basis points because of competition and higher liquid assets.

Westpac’s expenses came to $2.7 billion, which was down 26%. Excluding ‘notable items’, expenses were down 7%. It has reduced its headcount by more than 1,100. Costs are expected to be lower in FY22 and decline through the year, including from an organisational simplification. It’s committed to an $8 billion cost target by FY24.

The big four ASX bank recognised an impairment charge of $118 million, mostly from reflecting increased provision overlays due to continuing COVID-19 related uncertainty. However, Westpac said that asset quality metrics continue to improve.

Westpac also said that its balance sheet remains strong, with a common equity tier 1 (CET1) capital ratio of 12%, comfortably above APRA’s new benchmark of 10.25% for the major banks.

Westpac share price upside

The big four ASX bank is rated as a buy by the broker Morgans with a price target of $29.50. That’s a potential increase of around 25% over the next year. Morgans thinks Westpac shares shouldn’t be priced as cheaply as it is/was after successfully cutting (some) costs and a better outlook.

Based on the latest Westpac share price, Morgans values the bank at 10x FY23’s estimated earnings with a FY23 projected grossed-up dividend yield of 9.7%.

The post This expert says the Westpac (ASX:WBC) share price has 25% upside appeared first on The Motley Fool Australia.

More reading

• Why ‘dependable and reliable dividend payers’ could be the antidote to current volatility: expert
• These 3 ASX 200 shares are topping the volume charts this Tuesday
• Why are ASX 200 bank shares getting so much love today?
• These 3 ASX 200 shares are topping the volume charts on Monday
• Here’s why the Westpac (ASX:WBC) share price is storming higher today

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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The tech sector has fallen out of favour with investors in 2022. This has led to many tech shares falling heavily.

While this is disappointing, it may have created a buying opportunity for investors. For example, the three tech shares listed below have been tipped as buys with major upside potential. Here’s what you need to know about them:

Life360 Inc (ASX: 360)

The first ASX tech share to look at is San Francisco-based app maker Life360. Its eponymous app offers families a wide range of safety solutions for the modern world. This includes real-time location sharing and notifications, driving safety features like Crash Detection and Roadside Assistance, and messaging. At the last count, the company had over 3313 million monthly active users.

Bell Potter is very positive on the company. It currently has a buy rating and $13.51 price target on its shares. This is almost double the current Life360 share price of $7.00.

Nitro Software Ltd (ASX: NTO)

Another ASX tech share to look at is Nitro Software. It is a software company that is aiming to drive digital transformation in organisations around the world. Its key solution is the Nitro Productivity Suite, which provides integrated PDF productivity and electronic signature tools to customers. Demand has been growing strongly in recent years and has continued in FY 2022, underpinning further stellar recurring revenue growth.

Goldman Sachs is very positive on the company and notes that it has a total addressable market (TAM) of US$34 billion. The broker recently initiated coverage on its shares with a buy rating and $2.95 price target. This is 66% higher than the current Nitro share price of $1.78.

PointsBet Holdings Ltd (ASX: PBH)

A final ASX tech share to look at is PointsBet. It is a growing sports wagering operator and iGaming provider. PointsBet offers innovative sports betting products and services to punters in the ANZ and North American markets via its scalable cloud-based platform. Its shares have fallen materially in recent months despite it continuing to grow its revenues at a rapid rate.

Goldman Sachs appears to see this as a buying opportunity. It recently retained its buy rating and $9.97 price target. This is more than double the current PointsBet share price of $4.50.

The post 3 buy-rated ASX tech shares with at least 60% upside potential appeared first on The Motley Fool Australia.

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• 3 excellent ASX growth shares to buy before it’s too late
• Analyst say these ASX growth shares have at least 40% upside potential
• Analysts name 3 small cap ASX tech shares with major upside potential

Motley Fool contributor James Mickleboro owns Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Life360, Inc. and Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Nitro Software Limited and Pointsbet Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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I’m a big fan of buy and hold investing and believe it is one of the best ways for investors to grow their wealth.

To demonstrate how successful it can be, I like to pick out a number of popular ASX shares to see how much a single $20,000 investment 10 years ago would be worth today.

This time around I have picked out the two ASX shares that are listed below:

Premier Investments Limited (ASX: PMV)

Premier Investments shares have been a great place to invest your money over the last decade. This is thanks to the strong sales and profit growth that have been underpinned by its high quality portfolio of retail brands and its successful investments in other listed companies such as Breville Group Ltd (ASX: BRG).

The stars of the show have arguably been its Peter Alexander and Smiggle brands, which have grown materially over the last decade. And the good news is that management still sees plenty of growth opportunities ahead for the brands.

Overall, Premier Investments shares have provided investors with an average total return of 21.3% per annum over the last 10 years. This would have turned an investment of $20,000 in the company’s shares into almost $140,000 today.

Pro Medicus Limited (ASX: PME)

Another ASX share that has smashed the market over the last 10 years is Pro Medicus. It is a leading provider of radiology information systems (RIS), Picture Archiving and Communication Systems (PACS), and advanced visualisation solutions across the globe.

Pleasingly, demand for Pro Medicus’ technology continues to increase as healthcare institutions shift away from legacy systems. This has led to many of the largest health institutions in the world signing long-term contracts in recent years. They appear to have been attracted to its best in class system which combine speed, scalability, stability and smarts to help eliminate administrative tasks and workarounds, optimise the efficiency of clinical and administrative staff, and maximise profits.

All in all, the Pro Medicus share price has generated an average annual total return of 68% per annum since this time in 2012. This would have turned a $20,000 investment into a staggering ~$3.6 million.

The post Here’s how rich you’d be if you invested $20k in these shares 10 years ago appeared first on The Motley Fool Australia.

More reading

• 2 exciting ASX growth shares analysts are tipping for big things
• Top brokers name 3 ASX shares to sell today
• Pro Medicus (ASX:PME) share price surges 8% on historic results
• 2 unstoppable ASX shares growing rapidly
• Are ASX growth shares still worth holding in 2022?

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. owns and has recommended Pro Medicus Ltd. The Motley Fool Australia owns and has recommended Pro Medicus Ltd. The Motley Fool Australia has recommended Premier Investments Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Computershare Ltd (ASX: CPU) share price is on fire this year and some experts believe this will continue.

The company’s shares have surged by nearly 13% since the first day of trading in 2022 on 4 January. On Friday, the shares finished the week at $22.80. This followed an all-time high reached on Thursday at $23.44.

Let’s take a look at what these experts have to say about Computershare.

Is Computershare a buy?

The Computershare share price is not just up this year, it has also surged a whopping 65% in the past 52 weeks. Despite this, analysts are still bullish it can go up further.

Speaking to Livewire, Monash Investors principal Shane Fitzgerald says he sees Computershare as a buy.

Fitzgerald says:

Computershare is a great business, a great franchise, but the real interest in the stock at the moment is its exposure to interest rates. 

The upside surprise came from the Corporate Trust acquisition they did, and the level of growth that that business put on, just from the simple increase in interest rates that we have already seen, was pretty impressive, so there’s more of that to come. It’s a buy for us.

The Computershare share price surged last week on the back of the company’s H1 FY22 results. The company reported a 4.6% increase in management revenue to US$1.2 billion.

The board also declared an interim dividend of 24 cents per share, a 4.3% increase on the previous corresponding period.

Wilsons investment strategy head John Lockton is also optimistic about Computershare. He says: “We are a buyer of that story”.

Lockton added:

I think it’s got the cyclical benefit at the moment with interest rate leverage. It’s also got the longer-term structural theme on the trend of outsourcing.

Computershare share price snapshot

The Computershare share price has surged 9.3% in the past month. For perspective, the S&P/ASX 200 Index (ASX: XJO) has dropped 1.5% in the same period.

Computershare has a market capitalisation of around $14.01 billion based on today’s share price.

The post The Computershare (ASX:CPU) share price has had a stellar start to 2022. Here’s why these experts say there’s more good news to come appeared first on The Motley Fool Australia.

More reading

• 3 ASX 200 shares hitting 52-week highs today
• How did ASX tech shares perform today?
• These were the best performing ASX 200 shares last week
• What tech sell-off? This ASX 200 share is smashing new, all-time highs
• Here are the top 10 ASX shares today

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 Bruce Jackson.

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The S&P/ASX 200 Index (ASX: XJO) overcame a poor finish to carve out a small gain last week. The benchmark index rose 0.1% to end the period at 7,221.7 points.

A number of shares outperformed the ASX 200 last week, with some recording particularly strong gains. Here’s why these were the best performers on the index last week:

Sims Ltd (ASX: SGM)

The Sims share price was the joint best performer on the ASX 200 last week with a massive 21.5% gain. Investors were buying the scrap metal company’s shares following the release of a very strong half year result. Sims reported a 74% increase in revenue to $4,265 million and a 541% jump in underlying EBIT to $361.7 million. Management advised that this was driven by “higher sales volumes and higher material prices, combined with disciplined margin management.”

NRW Holdings Limited (ASX: NWH)

The NRW share price was the other joint best performer last week with a gain of 21.5%. The mining contractor’s shares surged higher following the release of its half year results. For the six months ended 31 December, NRW delivered a 26% increase in operating earnings to $74.6 million. In light of this strong form, management has updated and narrowed its full year guidance towards the top end of its previous range.

Magellan Financial Group Ltd (ASX: MFG)

The Magellan share price wasn’t too far behind with a gain of 19.8% over the five days. Almost all of this gain was made on Friday following the release of the fund manager’s half year results. That release revealed that Magellan delivered first half profit growth of 16% to $248.1 million. In addition, the struggling fund manager revealed a 1 for 8 bonus issue of options to shareholders and is considering a share buyback.

Silver Lake Resources Limited (ASX: SLR)

The Silver Lake share price was on form and stormed 16.5% higher last week. Investors were buying the gold miner’s shares following a solid rise in the price of the precious metal. Traders were bidding gold higher amid increased demand for safe haven assets amid rising tensions between Russian and the Ukraine.

The post These were the best performers on the ASX 200 last week appeared first on The Motley Fool Australia.

More reading

• What exactly is a share market ‘correction’ and is the ASX in one now?
• These were the worst performers on the ASX 200 last week
• Here are the top 10 ASX shares today
• Why Core Lithium, Humm, Magellan, and Smartgroup shares are storming higher
• ASX 200 (ASX:XJO) midday update: QBE sinks but Magellan rockets

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 Bruce Jackson.

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The Qantas Airways Ltd (ASX: QAN) share price finished lower on Friday but is still taking flight this year.

At the close of trading yesterday, the airline’s shares were down 1.48% at $5.31. For comparison, the benchmark S&P/ASX 200 Index (ASX: XJO) was down 1.02%.

Despite the slip, the Qantas share price remains up 6% since the closing bell on 31 December. That compares to a loss of around 3% posted by the ASX 200 so far in 2022.

The Flying Kangaroo has benefited from the reopening of domestic borders as COVID restrictions are rolled back, with Western Australia the remaining laggard.

Investors have also been bidding up the Qantas share price with an eye on the return of international air travel, slated to occur this Monday, 21 February.

But after trouncing the ASX 200 performance this year, is that Qantas share price still good value?

For some insight into that question, we turn to Shaw and Partners senior investment advisor Adam Dawes.

Jam-packed domestic flights

Qantas was among a small basket of ASX shares that Dawes said he’d buy today for a nice return over the coming months.

Despite the fast spread of the Omicron variant Down Under, Dawes said this hasn’t really dissuaded air travel. “I took a plane ride last week for the first time in 2 years. And let me tell you, these planes are absolutely jam-packed,” he said, adding, “I’m thinking Qantas is a good value play at the moment.”

Now the Aussie government is working towards “living with the virus”, Dawes believes the company’s domestic travel market could see the Qantas share price perform well.

“The stock has been beaten around but they’ve come out of it — they’ve reduced costs, their labour figures are okay,” he said.

A fly in the ointment for the airline is fast rising jet fuel costs. But according to Dawes, this is having a bigger impact on rival airline, Virgin. “Oil is probably a bit of a concern for the input costs,” he said. “But really they’ve left Virgin battered and bruised.”

Qantas also recently announced it would be building a new jet base in Darwin. It will see E190 jets servicing QantasLink routes and a new commercial route between Darwin and Dili.

Qantas share price snapshot

Qantas shares are up almost 14% over the past 12 months, outpacing the 5% gains posted by the ASX 200 over that same time.

Despite rebounding strongly following the initial pandemic-fuelled panic selling, the Qantas share price remains down 25% since the beginning of 2020.

Traditionally a reliable ASX dividend share, Qantas last paid a dividend in September 2019.

The post Up 6% this year, why the Qantas (ASX:QAN) share price is still a ‘good value play’ today: expert appeared first on The Motley Fool Australia.

More reading

• Own Qantas (ASX:QAN) shares? Here’s how Rex plans to turn up the heat
• 3 ASX shares to buy before the market rockets up again
• Why are ASX travel shares taking flight today?
• Border drama: Qantas (ASX:QAN) faces continued challenges on ‘kangaroo route’
• Qantas (ASX:QAN) share price slips amid Bonza plans to launch ‘something very different to the market’

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 Bruce Jackson.

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There has been a lot of volatility this year. Is the ASX share market currently in a correction?

Firstly, let’s talk about what a correction actually is.

What is an ASX share market correction?

A correction relates to the share market falling. For the ASX, this typically might refer to the S&P/ASX 200 Index (ASX: XJO) dropping in value.

A bear market – which isn’t a market where people buy bears – is seen as a bigger and longer decline of the market than a correction.

Motley Fool Australia has a number of handy guides and investing definitions on our website. The difference between a correction and a bear market is defined as this:

A ‘market correction’ is like a bear market but less severe. The technical definition is about a 10% decline in share prices in less than two months.

The idea behind a correction is that because prices rose higher than they should have, falling prices serve the purpose of ‘correcting’ the situation.

One major difference between a bear market and a market correction is the extent to which prices fall. Bear markets occur when share prices drop by 20% or more, whereas corrections typically involve price drops of about 10%.

Furthermore, market corrections tend to last less than two months, whereas bear markets last two months or longer.

Has there been an ASX share market correction?

Between 4 January 2022 and today, the ASX 200 has fallen almost 5%.

However, between 4 January 2022 and 27 January 2022, there was a decline of approximately 10%. But since that bottom, the ASX 200 has risen 5.6%.

Whilst the ASX share market as a whole has recovered some of the lost ground in the correction, there are others that are still ‘corrected’. A few remain more than 20% lower than the start of the year.

For example, the Xero Limited (ASX: XRO) share price is down around 30% since the start of 2022.

The Altium Limited (ASX: ALU) share price is down 23%.

The WiseTech Global Ltd (ASX: WTC) share price has fallen 24%.

Another example is the REA Group Limited (ASX: REA) share price being down 22%.

Why has volatility increased?

There has been a lot of talk about inflation and interest rates.

Interest rates can have a very important impact on asset values. As Warren Buffett once said at a Berkshire Hathaway annual general meeting:

The value of every business, the value of a farm, the value of an apartment house, the value of any economic asset, is 100% sensitive to interest rates because all you are doing in investing is transferring some money to somebody now in exchange for what you expect the stream of money to be, to come in over a period of time, and the higher interest rates are the less that present value is going to be. So every business by its nature … its intrinsic valuation is 100% sensitive to interest rates.

Rudi Filapek-Vandyck wrote on Livewire about what’s happening to the ASX share market:

The change in inflation forecasts over the past five weeks has been nothing short of dramatic… markets are now considering the idea that the Federal Reserve might have waited too long, and will be forced to step on the monetary brakes through accelerated actions. It is this change in projections that is currently feeding into volatility and uncertainty in markets.

In Australia, the general shift is to pull forward the first RBA rate hike to November or August this year.

In the US, forecasts have literally gone into overdrive with all kinds of scenarios being considered, including starting the cycle with 50bp, hiking at every meeting this year, having rate hikes in between meetings, and continuing at full force throughout 2023.

Time will tell what happens next with the ASX share market.

The post What exactly is a share market ‘correction’ and is the ASX in one now? appeared first on The Motley Fool Australia.

More reading

• These were the worst performers on the ASX 200 last week
• Here are the top 10 ASX shares today
• ASX 200 (ASX:XJO) midday update: QBE sinks but Magellan rockets
• This is how long the average investor holds onto their shares
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor Tristan Harrison owns Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Altium, WiseTech Global, and Xero. The Motley Fool Australia owns and has recommended WiseTech Global and Xero. The Motley Fool Australia has recommended REA Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The S&P/ASX 200 Index (ASX: XJO) continued its winning run last week with a small gain. The benchmark index rose 0.1% over the period to end it at 7,221.7 points.

Unfortunately, not all shares were able to climb higher with the market last week. Here’s why these were the worst performers on the ASX 200:

Hub24 Ltd (ASX: HUB)

The Hub24 share price was the worst performer on the ASX 200 last week with a decline of 13.3%. This was despite the investment platform provider completing its acquisition of SMSF software company Class. This appears to have been overshadowed by an underwhelming half year result from rival Netwealth Group Ltd (ASX: NWL).

Fortescue Metals Group Limited (ASX: FMG)

The Fortescue share price wasn’t far behind with a decline of 13.1% over the five days. This was driven by a softer than expected half year update and weakness in the iron ore price. The latter was driven by Chinese regulators that are aiming to cool the iron ore rally. They certainly achieved their goal, with prices tumbling so much they fell into a bear market. This also impacted the Mineral Resources Limited (ASX: MIN) share price, which dropped 10.2% last week.

EML Payments Ltd (ASX: EML)

The EML Payments share price was out of form and fell 10.2% over the period. This follows the release of a half year result which fell short of expectations on the top line due to Omicron impacts during the holiday shopping period. However, management did reiterate its full year guidance despite this.

Zip Co Ltd (ASX: Z1P)

The Zip share price continued its poor run and dropped a further 9.8%. This means the buy now pay later (BNPL) provider’s shares have now lost almost 80% of their value over the last 12 months. Last week’s weakness appears to have been driven by regulatory concerns and further weakness in the shares of global players such as Affirm.

The post These were the worst performers on the ASX 200 last week appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• What’s going so wrong for ASX BNPL shares this week?
• Why Fortescue, Goodman, Inghams, and QBE shares are dropping
• The ASX 200 is awash with 52-week lows on Friday. Here are some of the biggest names growing smaller
• What is a supercycle and are ASX 200 mining shares at the start of one?

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. owns and has recommended EML Payments, Hub24 Ltd, Netwealth, and ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended EML Payments and Netwealth. The Motley Fool Australia has recommended Hub24 Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Australia’s leading investment experts are always on the lookout for ASX dividend share opportunities that look like they’re good value.

Some businesses are considered as ASX growth shares, like Xero Limited (ASX: XRO) and Altium Limited (ASX: ALU).

However, there are a handful of businesses that are both buy-rated and offer a good potential yield. Here are two of them:

DEXUS Property Group (ASX: DXS)

Dexus describes itself as Australia’s leading fully integrated real estate group, managing a portfolio of Australian property worth $45.3 billion. It directly owns $18.3 billion of office, industrial and healthcare properties.

The ASX dividend share says that its $17.8 billion pipeline provides the opportunity to grow both portfolios and enhance future returns.

Dexus says that it’s benefiting from key megatrends of urbanisation, technology advances and the growth in pension capital flows. Management thinks the business is well-positioned to continue to leverage these trends to support investor returns.

Its goal is to deliver superior risk-adjusted returns from high-quality real estate and seek opportunities that can deliver sustainable income while growing and diversifying the funds management business.

Valuation gains across the total property portfolio for the period to 31 December 2021 helped the 3.1% increase in the net tangible asset (NTA) per security to $11.77.

It’s currently rated as a buy by the broker Morgan Stanley with a price target of $12.57. The broker is expecting Dexus is going to pay a yield of 5% in FY22.

Fletcher Building Limited (ASX: FBU)

Fletcher Building is a manufacturer, home builder, and partner on major construction and infrastructure projects. It has a significant presence in New Zealand but it also has operations in Australia and the South Pacific.

The ASX dividend share recently revealed its FY22 half-year result which saw another period of growth.

Revenue increased 2% to $4.06 billion. Earnings before interest and tax (EBIT) went up 3% to $332 million. Net profit after tax (NPAT) jumped 41% to $171 million.

The second-quarter EBIT was $264 million, up 73% year on year. This offset COVID-19 lockdown impacts of around $105 million of EBIT in the first quarter.

Fletcher Building is expecting the FY22 second half to be “very solid” with forward indicators pointing to continuing volumes.

Beyond this financial year, Fletcher Building thinks it’s very well positioned to drive growth. In New Zealand, it’s investing in its increased manufacturing capacity and driving product and market growth.

In FY23, it’s expecting to further improve BIT margins across the group to 10% in FY23. It has a maturing pipeline of investments that will keep driving growth beyond FY23, according to the company.

Credit Suisse rates Fletcher Building as a buy, with a price target of $9.30. It’s expecting that in FY22, the ASX dividend share will have a yield of 6%.

The post 2 ASX dividend shares to buy this month: experts appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison owns Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Altium and Xero. The Motley Fool Australia owns and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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