2 top ASX dividend shares rated as buys

Brokers are fans of these ASX dividend shares. Are you?

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Are you looking for some dividend options for your portfolio in June? Then check out the two ASX shares listed below.

Here’s why these ASX dividend shares have been tipped to as buys this month:

Bapcor Ltd (ASX: BAP)

The first ASX dividend share to look at is Bapcor. It is the Asia Pacific’s leading provider of vehicle parts, accessories, equipment, service and solutions. It is also the name behind a number of retail brands such as Autobarn, Burson Auto Parts and Midas.

Bapcor has been performing very strongly in FY 2021 thanks to strong demand for used cars. This has resulted in elevated sales across its brands.

Positively, the company looks well-placed to continue its growth in the future. This is thanks to its strong market position and its expansion plans. The latter is being driven both domestically and in the Asia market.

According to a note out of Citi, its analysts are expecting Bapcor to grow its fully franked dividend to 19 cents per share in FY 2021 and then 22 cents per share in FY 2022. Based on the current Bapcor share price of $8.17, this will mean yields of 2.3% and 2.5%, respectively.

Citi has a buy rating and $9.50 price target on the company’s shares.

Scentre Group (ASX: SCG)

Times may have been hard for this shopping centre-focused property company, but the worst could now be over.

That’s the view of analysts at Goldman Sachs. Late last month the broker reiterated its buy rating and $3.60 price target on the company’s shares.

Goldman notes that Australian inflation expectations are currently at their highest level since 2015. This is a big positive for Scentre, with the broker’s analysis suggesting that Scentre is far more positively leveraged to inflation than any other Australian real estate investment trusts under its coverage.

Goldman is forecasting a 14 cents per share dividend in FY 2021. Based on the latest Scentre share price of $2.80, this equates to a 5.2% yield.

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James Mickleboro does not own any shares mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Bapcor. 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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