2 excellent ASX dividend named as buys

Here are two dividend shares rated as buys…

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If you're looking to add some ASX dividend shares to your portfolio, then the two listed below could be worth considering.

Here's what you need to know about these top dividend shares:

Australia and New Zealand Banking GrpLtd (ASX: ANZ)

The first ASX dividend share to consider is ANZ. It is of course one of the big four banks, with operations across consumer and business banking.

It could be a top option for income investors due to its attractive valuation and positive dividend outlook. The latter is being underpinned by its improving performance and plans to reduce its costs by $900 million by 2023 through automation and digital banking.

Morgans is positive on the company's plans and is forecasting generous dividend payments in the coming years. It has pencilled in fully franked dividends per share of $1.45 in FY 2021 and then $1.65 in FY 2022. Based on the current ANZ share price of $28.21, this will mean yields of 5.1% and 5.8%, respectively.

Morgans has an add rating and $34.50 price target on its shares.

Scentre Group (ASX: SCG)

Another ASX dividend share to look at is Scentre. It is the owner and operator of Australia's leading shopping centre portfolio with $50 billion of retail real estate assets under management. This comprises 42 Westfield shopping centres.

While lockdowns have hit the company hard, it looks well-placed to bounce back as trading conditions improve. In addition, the company has significant exposure to inflation. And it is partly for this reason that Goldman Sachs is bullish on Scentre.

The broker notes that Australian inflation expectations are currently at their highest level since 2015. This is a big positive for Scentre due to it being more positively leveraged to inflation than any other Australian real estate investment trust under the broker's coverage. Goldman estimates that 70%+ of its base rental income is subject to inflation-linked escalation.

The broker 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 $3.11, will mean yields of 4.5% and 5.5%, respectively.

Goldman has a buy rating and $3.41 price target on the company's shares.

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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