2 excellent ASX dividend shares to buy

National Australia Bank Ltd (ASX:NAB) and this ASX dividend share could be top options for income investors. Here’s why…

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Are you looking for some excellent ASX dividend shares to add to your income portfolio? 

Then you might want to take a look at the ones listed below. Here’s what you need to know about these dividend shares:

National Australia Bank Ltd (ASX: NAB)

If you don’t have exposure to the banks, then you might want to take a look at NAB. Even though its shares have been on fire this year, one leading broker doesn’t believe it is too late to invest.

According to a note out of Goldman Sachs, its analysts have a conviction buy rating and $29.97 price target on the bank’s shares. NAB remains the broker’s preferred sector exposure due to its cost management initiatives, its position as the largest business bank, and its strong capital position.

Goldman is forecasting fully franked dividends of 124 cents per share and 133 cents per share in FY 2021 and FY 2022, respectively. Based on the current NAB share price of $26.81, this will mean yields of 4.6% and 5%.

Sydney Airport Holdings Pty Ltd (ASX: SYD)

Another ASX dividend share to look at is this airport operator. With the domestic tourism market recovering and vaccines rolling out across the world, it may not be long until Sydney Airport’s terminals are packed full of travellers again.

Goldman Sachs is also positive on Sydney Airport and believes it is worth being patient with the company. It notes that the airport remains in an effective hibernation and expects it to be a major beneficiary of the Australian domestic inoculation strategy, if it facilitates relaxation of border restrictions.

The broker currently has a buy rating and $6.73 price target on its shares. It is also forecasting dividends per share of ~8.8 cents and ~27.1 cents over the next two years. 

Based on the current Sydney Airport share price, this will mean yields of 1.4% and 4.3%, respectively.

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*Returns as of August 16th 2021

Motley Fool contributor James Mickleboro 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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