If you're wanting to add some ASX dividend shares to your portfolio, then it could be worth considering the two listed below.
Here's why analysts at Morgans think they could be top options for income investors in February:
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Telstra Corporation Ltd (ASX: TLS)
The first ASX dividend share to look at is Telstra. It could be a dividend share to buy due to its outlook being the best it has been in over a decade. This is being underpinned by the successful execution of its transformative T22 strategy and the growth targets included in its new T25 strategy.
Morgans is very positive on the company and sees a lot of value in its shares at the current level. It has an add rating and $4.55 price target on them.
The broker commented: "The SOTP [sum of the part] for TLS is worth more than the current share price (and steps to release this value are underway; albeit timing is unclear)."
As for dividends, Morgans continues to expect fully franked dividends per share of 16 cents for FY 2022 and FY 2023. Based on the current Telstra share price of $3.94, this implies yields of 4% for investors.
Transurban Group (ASX: TCL)
Another ASX dividend share that the broker is positive on is toll road operator Transurban. It has an add rating and $14.57 price target on its shares.
Morgans notes that Transurban's performance has been improving, with traffic volumes recovering nicely from the pandemic.
It commented: "A recovery trend is evident in Melbourne (TCL's single largest asset), Sydney is exceeding 2019, while Brisbane remains broadly in-line with 2019. TCL expects traffic to return to long-term trend by 2023."
In addition, the broker is positive on the future due to its exposure to a number of growth drivers.
Morgans explained: "We view TCL as a high quality pure-play toll road infrastructure portfolio benefitting from employment and population growth, urbanisation, and the value of time, with particular exposure to the east coast capital cities in Australia."
As for dividends, the broker is forecasting dividends per share of 35 cents in FY 2022 and then 55.3 cents in FY 2023. Based on the current Transurban share price of $12.72, this implies yields of 2.75% and 4.35%, respectively.
