If you're currently building an income portfolio, then you might want to look at the shares listed below.
Here's why these ASX dividend shares could be worth considering right now:
South32 Ltd (ASX: S32)
The first ASX dividend share to look at is this mining giant. It could be a top option for income investors due to its attractive valuation and generous yield.
South32 has exposure to a range of commodities such as alumina, aluminium, energy coal, metallurgical coal, manganese ore, nickel, silver, lead, and zinc. It has also just announced the proposed acquisition of a 45% stake in Sierra Gorda that adds copper to its portfolio.
Thanks the strong prices of many of these commodities, the team at Goldman Sachs believe South32's shares will provide investors with fully franked dividend yields of greater than 11% per annum for the next five years.
In light of this, Goldman has a conviction buy rating and $4.40 price target on its shares. This compares favourably to the latest South32 share price of $3.61.
Transurban Group (ASX: TCL)
Another ASX dividend share that could be in the buy zone is Transurban.
It is one of the world's leading toll road operators with a collection of important roads in Australia and North America. These include CityLink in Melbourne and the Cross City Tunnel and Eastern Distributor in Sydney. Transurban has also just boosted its portfolio with the acquisition of the remaining stake in WestConnex from the NSW government.
Lockdowns and border closures have been weighing on its performance this year. However, with Australia reopening again, the company is expected to see a big rebound in traffic volumes on its roads. This bodes well for its earnings and dividends in the coming years.
Morgans currently has an add rating and $14.79 price target on the company's shares. It is also forecasting dividends of 39 cents per share in FY 2022 and then 57 cents per share in FY 2023.
Based on the current Transurban share price of $13.69, this will mean yields of 2.8% and 4.15%, respectively.
