2 ASX dividend shares named as buys

About Latest Posts James MickleboroJames Mickleboro has been a Motley Fool contributor since late 2015. After studying economics at university …

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If you're in the process of 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:

Scentre Group (ASX: SCG)

The first ASX dividend share to consider is Scentre. Although its Australian Westfield properties struggled during the pandemic, its outlook is improving and a return to growth is being predicted in the near future.

Goldman Sachs is very positive on Scentre and is forecasting solid revenue, income, and dividend growth in the coming years.

The broker also notes that inflation expectations are currently at their highest level in years. This bodes well for Scentre as it is more positively leveraged to inflation than any other Australian real estate investment trust under Goldman's coverage.

Its analysts are 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 $2.64, this equates to yields of 5.3% and 6.4%, respectively.

Goldman has a buy rating and $3.29 price target on the company's shares.

Westpac Banking Corp (ASX: WBC)

Another ASX dividend share to consider is Westpac. Australia's oldest bank has returned to form this year following a tricky period during the pandemic. This led to the company reporting a bumper profit result in the first half, which has positioned it to return significant funds to investors this year.

Morgan Stanley is bullish on the banking giant and has a buy rating and $29.20 price target on its shares.

It likes Westpac due to its attractive valuation and the prospect of significant capital management.

Morgan Stanley is forecasting fully franked dividends per share of $1.18 and $1.25 over the next two years. Based on the latest Westpac share price of $25.12, this will mean yields of 4.7% and 5%, respectively.

Motley Fool contributor James Mickleboro owns shares of Westpac Banking Corporation. 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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