2 highly-rated ASX dividend shares for income investors in July

Check out these dividend shares if you’re looking for income…

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If you’re building an income portfolio, then you might want to look at the shares listed below.

Here’s why these ASX dividend shares could be in the buy zone right now:

Mineral Resources Limited (ASX: MIN)

The first dividend share to look at is Mineral Resources. It is a leading mining and mining services company with exposure to iron ore and lithium.

It is the owner of the Wodgina operation, which is one of the largest known hard rock lithium deposits in the world with a production life of over 30 years. Mineral Resources also jointly owns the Mt Marion Lithium project with Jiangxi Ganfeng Lithium, which it operates under a life-of-mine mining services contract. This is complemented by its Iron Valley Iron Ore project and the Koolyanobbing Iron Ore project in Western Australia.

Analysts at Macquarie are very positive on Mineral Resources. They currently have an outperform rating and $73.00 price target on the company’s shares. The broker is also forecasting dividends of $3.32 per share in FY 2021 and then $3.05 per share in FY 2022. Based on the latest Mineral Resources share price of $57.50, this will mean fully franked yields of 5.8% and 5.3%, respectively, over the next two financial years.

Scentre Group (ASX: SCG)

Another dividend share to consider is Scentre. While its Westfield properties in Australia struggled during the pandemic, the worst now appears to be over and a return to growth is being predicted.

For example, Goldman Sachs is positive on Scentre and is forecasting solid revenue, income, and dividend growth in the coming years. It notes that inflation expectations are currently at their highest level since 2015. This is good news for Scentre as it is more positively leveraged to inflation than any other Australian real estate investment trust under its coverage.

Goldman is forecasting dividends of 14 cents per share in FY 2021 and then 17 cents per share in FY 2022. Based on the latest Scentre share price of $2.78, this equates to yields of 5% and 6.1%, respectively.

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Motley Fool contributor James Mickleboro has no position in any of the stocks 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 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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