If you’re an income investor on the lookout for new additions to your portfolio, then you might want to look at the shares listed below.
Here’s why these ASX dividend shares could be in the buy zone:
Australia and New Zealand Banking GrpLtd (ASX: ANZ)
The first ASX dividend share to look at is ANZ Bank. It hasn’t been an easy couple of years for the big four banks with the Royal Commission, the housing market downturn, and the pandemic hitting them hard.
However, things are looking significantly better for the banks now. This is due to the housing market recovery, the relaxing of responsible lending rules, and the COVID-19 vaccine rollout. This could make it a good time to consider gaining exposure to the sector.
Positively, analysts at Morgans believe the ANZ share price is trading at a very attractive level. They have recently reiterated their add rating and lifted their price target on its shares to $31.00. The broker is also forecasting a $1.45 per share dividend in FY 2021 and then a $1.61 per share dividend in FY 2022.
Based on the current ANZ share price, this will mean fully franked yields of 5.15% and 5.65%, respectively.
Aventus Group (ASX: AVN)
Another ASX dividend share to look at is Aventus. It is the largest fully integrated owner, manager, and developer of large format retail centres in Australia.
Thanks to its exposure to everyday needs and the household goods sector, Aventus has been performing very positively during the pandemic. Which is quite a contrast to how some of its retail landlords have been performing.
Last month Aventus released its half year results and reported a modest increase in revenue and a 43% lift in net profit to $103.4 million. The latter includes a $25.7 million increase in the net fair value of its property.
Goldman Sachs is positive on the company and currently has a buy rating and $3.04 price target on its shares. The broker is also estimating that it will pay a ~16.6 cents per share distribution this year. Based on the current Aventus share price, this represents a 5.85% yield.
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Returns As of 15th February 2021
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended AVENTUS RE UNIT. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.