If you're looking to boost your income with some dividend shares, then you might want to consider the ones listed below.
Here's why analysts have given them buy ratings:
Telstra Corporation Ltd (ASX: TLS)
The first ASX dividend share to look at is Australia's largest telco, Telstra.
It certainly has been an eventful few years for Telstra. After several years of earnings and dividend declines, a return to growth is finally in sight for the company. This is being driven by the easing NBN headwind, significant cost cutting, and its leadership position in 5G internet.
In addition to this, the company is looking to split up the company and offload assets such as its towers. This is expected to unlock significant value for shareholders.
In light of the above, the dividend cuts appear to be over and 16 cents per share looks likely to be the bottom. Goldman Sachs is confident of this and is forecasting fully franked 16 cents per share dividends for the foreseeable future. Based on the current Telstra share price of $3.43, this will mean a 4.7% yield.
Goldman has a buy rating and $4.00 price target on the company's shares.
Transurban Group (ASX: TCL)
Another ASX dividend share to look at is Transurban. It is one of the world's leading toll road operators with 17 roads in Australia and four in North America. It also has a significant project pipeline across its networks that could support its growth in the coming years.
While traffic volumes have been lower because of the pandemic, they have been improving greatly. For example, during the month of March, Transurban's monthly traffic was down just 5% compared to the prior corresponding period. This was an improvement from an 11% decline in February. This trend is likely to continue as vaccines roll out and life returns to normal in its key markets.
Ord Minnett appears confident this will be the case and is expecting it to lead to a rebound in distributions in FY 2022. The broker is forecasting dividends of 37 cents per share in FY 2021 and then 58 cents per share next year. Based on the latest Transurban share price of $13.84, this will mean forward yields of 2.7% and 4.2%, respectively.
The broker has a buy rating and $16.00 price target on the company's shares.
