Although the outlook for interest rates is improving, it still looks likely to be some time until rates are at a level sufficient to generate a passive income.
In light of this, dividend shares could be one of the better ways to achieve a passive income for a little while to come.
But which dividend shares should you buy? Two that analysts rate highly right now are listed below:
BHP Group Ltd (ASX: BHP)
The first ASX dividend share to look at is this mining giant. It could be a top option due to its world class portfolio of operations globally and favourable commodity prices.
This is expected to underpin significant free cash flow in FY 2022. So much so, the team at Macquarie is forecasting very generous dividend payments this year and in the future. For example, iys analysts have pencilled in fully franked dividends of ~$3.86 per share in FY 2022 and ~$2.86 per share in FY 2023.
Based on the current BHP share price of $46.15, this will mean yields of 8.4% and 6.2%, respectively.
Macquarie also sees decent upside for BHP shares and has an outperform rating and $52.00 price target.
Macquarie Group Ltd (ASX: MQG)
Another ASX dividend share to consider is investment bank Macquarie. Although its shares have been very strong performers over the last 12 months, the team at Citi still see value in them and expect attractive yields in the near term.
The broker currently has a buy rating and $226.00 price target on the company’s shares. As for dividends, Citi is forecasting dividends per share of $6.42 in FY 2022 and then $6.10 in FY 2023.
Based on the current Macquarie share price of $207.61, this will mean yields of 3.1% and 2.9%, respectively, over the next couple of years.