2 buy-rated ASX dividend shares with attractive yields

Sonic Healthcare Limited (ASX:SHL) and this buy-rated ASX dividend share could be great options for income investors right now. Here's why…

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Fortunately, in this low interest rate environment, the Australian share market is home to a range of shares that are expected to provide attractive yields to investors in 2021. 

If you're interested in adding a few to your portfolio, then you may want to look at the ones listed below. Here's why they could be dividend shares to buy:

dividend share

Image source: Getty Images

Sonic Healthcare Limited (ASX: SHL)

Sonic Healthcare is a leading medical diagnostics company with operations across the world.

It could be a good option due to its strong business model and positive performance during the pandemic.

In respect to the latter, in February Sonic released its half year results and revealed a 33% increase in revenue to $4.4 billion and a massive 166% increase in first half net profit to $678 million.

And while COVID-19 testing has been a key driver of this growth, the rest of the business performed positively as well.

Morgan Stanley is positive on the company. Its analysts currently have an overweight rating and $38.60 price target on its shares.

The broker is also forecasting dividends of 86.2 cents per share in FY 2021 and 89.2 cents per share in FY 2022. Based on the latest Sonic share price of $34.82, this will means yields of 2.5% and 2.6%. 

Wesfarmers Ltd (ASX: WES)

Another option to consider is Wesfarmers. Like Sonic, the conglomerate has been performing very positively in FY 2021.

This has been driven by growth across the majority of its businesses but particularly from the Bunnings business.

The hardware giant has been benefiting from home improvement-related government stimulus and the booming housing market.

Goldman Sachs is also a fan of Wesfarmers and currently has a buy rating and $59.70 price target on its shares. This compares to the latest Wesfarmers share price of $54.81.

The broker is also forecasting fully franked dividends of $1.88 per share in FY 2021 and $1.94 per share in FY 2022. This represents attractive yields of 3.4% and 3.5%, respectively.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Wesfarmers Limited. The Motley Fool Australia has recommended Sonic Healthcare Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Dividend Investing

Red buy button on an Apple keyboard with a finger on it.
Dividend Investing

I invested thousands into these 2 ASX dividend shares this week

I’ve been investing heavily into these two names.

Read more »

A wad of $100 bills of Australian currency lies stashed in a bird's nest.
Dividend Investing

How many NAB shares do I need to buy for $10,000 a year in passive income?

NAB shares historically pay two fully-franked dividends every year.

Read more »

A cool young man walking in a laneway holding a takeaway coffee in one hand and his phone in the other reacts with surprise as he reads the latest news on his mobile phone
Dividend Investing

8% yield: The ASX is getting a new dividend stock that pays out monthly

This soon-to-be stock has averaged an 8% yield since 2016...

Read more »

Happy young couple saving money in piggy bank.
Dividend Investing

How many BHP shares do I need to $1,000 of passive income?

Let's run the numbers and find out what is needed.

Read more »

Man holding Australian dollar notes, symbolising dividends.
Dividend Investing

Where to invest $2,000 in ASX dividend shares

Morgans thinks these shares are buys with attractive forecast dividend yields.

Read more »

a woman puts a pen to her mouth as she smiles slightly while checking an old book style diary/calendar.
Dividend Investing

20 ASX shares with ex-dividend dates next week

To be eligible to receive a dividend, you must own the ASX share before the ex-dividend date.

Read more »

View of a business man's hand passing a $100 note to another with a bank in the background.
Dividend Investing

Everything you need to know about the latest Soul Patts dividend

Here’s how big the latest dividend is from the investment house…

Read more »

Australian dollar notes in the pocket of a man's jeans, symbolising dividends.
Dividend Investing

Fund manager names 3 top ASX 200 dividend stocks to buy today

A leading fund manager expects these quality ASX dividend stocks will boost their payouts.

Read more »