Are you looking for some dividend shares to boost your income portfolio? If you are, then you might want to look at the ones listed below.
Here's why these ASX dividend shares could be in the buy zone:
Image source: Getty Images
Aurizon Holdings Ltd (ASX: AZJ)
The first ASX dividend share to look at is Aurizon. It is Australia's largest rail freight operator, transporting more than 250 million tonnes of Australian commodities each year.
Macquarie is a big fan of the company and currently has an outperform rating and $4.32 price target on its shares.
The broker believes Aurizon is well-placed with almost $1 billion in balance sheet capacity to drive its growth through acquisitions. It has suggested that potential acquisition targets could be grain companies with port and logistics assets.
In the meantime, Macquarie is forecasting partially franked dividends of 27.8 cents per share in FY 2021 and then 28.6 cents per share in FY 2022. Based on the latest Aurizon share price of $4.06, this represents very attractive yields of 6.8% and 7%, respectively.
Bravura Solutions Ltd (ASX: BVS)
Another ASX dividend share to look at is Bravura Solutions. It is a leading provider of software products and services to the wealth management and funds administration industries.
While a subdued result is expected in FY 2021 because of Brexit and COVID-19, management appears confident that demand will bounce back once these headwinds ease. In fact, a recent update has shown big improvements in its performance, potentially setting it up for a strong year in FY 2022.
Goldman Sachs is positive on the company and believes it is well positioned due to its strong market position, high degree of recurring revenue, and its emerging microservices ecosystem strategy.
The broker has a buy rating and $3.90 price target on its shares. It is forecasting dividends per share of 9 cents in FY 2021, 10 cents in FY 2022, and then 12 cents in FY 2023. Based on the current Bravura share price of $3.59, this will mean yields of 2.5%, 2.8%, and 3.3%, respectively.
