If you're building an income portfolio, then you might want to look at the shares listed below.
Both ASX dividend shares have big yields and have been named as buys by analysts. Here's what you need to know about them:
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Super Retail Group Ltd (ASX: SUL)
The first ASX dividend share for income investors to look at is Super Retail. It is the retail conglomerate behind the BCF, Macpac, Rebel, and Super Cheap Auto brands.
These brands have been performing very positively during the pandemic, leading to stellar sales and profit growth. For example, in FY 2021, Super Retail reported a 22% increase in sales to $3.45 billion and a 107% jump in normalised net profit after tax to $306.8 million.
And while trading conditions have been tough this financial year because of lockdowns, Super Retail is still being tipped to provide investors with a generous dividend payment.
According to a recent note out of Citi, its analysts have a buy rating and $16.00 price target on the company's shares. The broker is also forecasting fully franked dividends per share of 67 cents in FY 2022 and then 64.5 cents in FY 2023.
Based on the current Super Retail share price of $13.41, this will mean yields of 5% and 4.8%, respectively.
Westpac Banking Corp (ASX: WBC)
Another ASX dividend share to consider is Westpac. Australia's oldest bank has returned to form this year after rebounding strongly from the pandemic.
For example, at the start of the month, Westpac reported a 138% increase in full year statutory net profit to $5,458 million and a 105% jump in cash earnings to $5,352 million. This allowed Westpac to declare a fully franked final dividend of 60 cents per share and announce a $3.5 billion off-market share buyback.
And while its margin outlook disappointed the market, the severe selloff that ensued could have created a buying opportunity for investors. That appears to be the view of Morgans, which has just retained its add rating and lifted its price target to $30.50.
The broker is also forecasting generous yields in the near future. Morgans has pencilled in fully franked dividends of $1.23 per share in FY 2022 and then $1.62 per share in FY 2023. Based on the current Westpac share price of $22.83, this will mean yields of 5.4% and 7.1%, respectively.
