2 buy-rated ASX dividend shares for income investors

Income investors may want to look at these top dividend shares…

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Are you looking for some dividend options for your portfolio in September? if you are, check out the two ASX shares listed below.

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

ASX dividend shares represented by cash in jeans back pocket

Image source: Getty Images

Scentre Group (ASX: SCG)

The first ASX dividend share to look at is Scentre. It owns and operates the pre-eminent shopping centre portfolio in Australia and New Zealand with retail real estate assets under management valued at $50.1 billion and shopping centre ownership interests valued at $34.3 billion.

This comprises 42 Westfield shopping centres, which management notes have strong franchise value and the ability to attract the world's leading retail brands.

While lockdowns are weighing on its near term performance, the company's medium term outlook looks positive. Especially given its leverage to inflation and the very favourable inflation expectations in Australia. This should be a boost to its rental income in the coming years.

It is largely for this reason that Goldman Sachs has a buy rating and $3.32 price target on the company's shares.

In addition, Goldman is forecasting a 14 cents per share dividend in FY 2021 and a 16 cents per share dividend in FY 2022. Based on the latest Scentre share price of $2.99, this equates to 4.7% and 5.4% yields, respectively.

Suncorp Group Ltd (ASX: SUN)

Another dividend share to look at is Suncorp. It offers insurance, banking, and wealth products and services through some of Australia and New Zealand's most recognised financial brands. These include AAMI, Apia, Bingle, GIO, Shannons, Vero, and the eponymous Suncorp brand.

It was on form in FY 2021, reporting a 42.1% increase in cash earnings to $1,064 million. This was ahead of the market's expectations. In addition, the company announced a final dividend of 40 cents per share, a special dividend of 8 cents per share, and a $250 million on-market share buyback.

One broker that was very pleased with the result was Goldman Sachs. In response, the broker has put a buy rating and $13.74 price target on Suncorp's shares.

Goldman is also forecasting a 61 cents per share fully franked dividend in FY 2022. Based on the current Suncorp share price of $12.60, this will mean a 4.8% dividend yield.

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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