Although the shares listed below may not offer the largest yields on the market, they are growing at a solid rate. This could make them great long term options for patient income investors.
Here’s why analysts are rating them as buys right now:
Carsales.Com Ltd (ASX: CAR)
The first dividend share to look at is Carsales. It is a leading online advertising services company with a focus on the automotive industry. It generates its revenue predominantly from classified and display advertising. The former is from private sellers and dealer customers selling vehicles, whereas the latter is advertising from corporate customers such as finance and insurance companies.
It has been tipped for growth over the 2020s thanks to its dominant auto listings business in the ANZ market and its growing international operations. The latter will soon be boosted by the acquisition of a majority stake in US based Trader Interactive. It is a digital marketing solutions and services provider to the commercial truck, recreational vehicle, powersports, and equipment industries.
One broker that is positive on its prospects is Morgan Stanley. The broker currently has an outperform rating and $23.00 price target on its shares. This compares to the latest Carsales share price of $20.61. Morgan Stanley is forecasting dividends per share of 62 cents in FY 2021 and then 71.6 cents in FY 2022. This represents fully franked dividend yields of 3% and 3.5%, respectively.
Ramsay Health Care Limited (ASX: RHC)
Ramsay Health Care could be an ASX dividend share to consider. It is a global private healthcare company with facilities catering for a broad range of healthcare needs. This ranges from primary care to highly complex surgery, as well mental health care and rehabilitation.
The company is currently looking to add to its portfolio with the acquisition of Spire Healthcare. This morning Ramsay increased its offer in the hope of sealing a deal. If the takeover is a success, it is expected to create a leading private health care services provider in the lucrative UK market. It will also diversify its UK payor sources, case mix, expand the geographic reach of its capabilities, and improving capacity utilisation.
For now, though, Ramsay appears well-placed to benefit from a post-pandemic backlog in surgeries in the near term. This is expected to underpin solid earnings and dividend growth in the coming years.
Citi is bullish on Ramsay and currently has a buy rating and $76.00 price target on its shares. This compares to the latest Ramsay share price of $62.90. The broker is forecasting fully franked dividend yields of 2.4%, 3.3%, and then 3.6% over the next three financial years.