Here are 2 ASX dividend shares that brokers rate as buys

A female stockbroker reviews share price performance in her office with the city shown in the background through her windows

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Income investors that are looking for dividend options this week might want to check out the two ASX shares listed below.

Both of these ASX dividend shares have recently been tipped as buys by brokers. Here’s why analysts are bullish:

Baby Bunting Group Ltd (ASX: BBN)

The first ASX dividend share that is rated as a buy is leading baby products retailer Baby Bunting.

It has been tipped as a buy by analysts at Citi. This is partly due to its private label opportunity, which the broker believes has a significant runway for growth. Citi also highlights that it has a strong position in a less discretionary category, which bodes well for sales in the current environment.

As for dividends, the broker is forecasting fully franked dividends per share of 16 cents in FY 2022 and 19 cents in FY 2023. Based on the current Baby Bunting share price of $4.64, this will mean yields of 3.45% and 4.1%, respectively.

Citi has a buy rating and $6.22 price target on its shares.

HomeCo Daily Needs REIT (ASX: HDN)

Another ASX dividend share that has been named as a buy is HomeCo Daily Needs REIT. It is a property company with a focus on neighbourhood retail, health and services, and large format retail.

Goldman Sachs is a big fan of HomeCo Daily Needs. Its analysts believe the company is well placed for growth thanks to the shift to omni channel retailing. In addition, Goldman highlights that the company has additional development and asset optimisation opportunities.

In respect to dividends, the broker is forecasting dividends per share of 8 cents in FY 2022 and 9 cents in FY 2023. Based on the current HomeCo Daily Needs share price of $1.36, this will mean dividend yields of 5.9% and 6.6%, respectively.

Goldman has a buy rating and $1.70 price target on its shares.

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