2 high yield ASX dividend shares analysts rate as buys

These dividend shares have been tipped to provide big yields…

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If you’re wanting to boost your income portfolio with some new dividend shares this month, then the two listed below could be worth considering.

Here’s why analysts are positive on these high yield dividend shares right now:

GQG Partners Inc (ASX: GQG)

The first dividend share for investors to look at is fund manager, GQG. While its shares have rebounded strongly from recent lows, they are still trading well below their $2.00 IPO price from October.

Analysts at Morgans appear to believe this could be a buying opportunity. Particularly given its positive performance in FY 2021 and attractive valuation. The broker has an add rating and $2.15 price target on its shares.

Its analysts commented: “GQG has seen a valuation de-rate along with the broader sector, however we view it as unwarranted. Both relative investment performance and flows remain strong. We view GQG’s ~11x FY22 PE as attractive versus its diversity of earnings; current flows momentum; and expected growth. Add maintained.”

As for dividends, Morgans is expecting dividends of 12 cents per share in FY 2022 and then 13 cents per share in FY 2023. Based on the current GQG share price of $1.52, this will mean yields of 7.9% and 8.5%, respectively.

HomeCo Daily Needs REIT (ASX: HDN)

Another ASX dividend share that could be in the buy zone is HomeCo Daily Needs REIT. It is a property company that invests in convenience-based assets across target sub-sectors of neighbourhood retail, large format retail, and health and services.

This has been a great area of the market to be in, with HomeCo Daily Needs delivering strong growth so far in FY 2022. This went down well with analysts at Goldman Sachs, which led to the broker putting a buy rating and $1.70 price target on its shares.

Goldman commented: “We believe HDN is undervalued at its current valuation given its diversified tenant base, and see it as well positioned to benefit from the shift to omni channel retailing, with additional external growth opportunities to drive earnings growth over the medium-term.”

In respect to dividends, the broker is forecasting dividends per share of 8 cents in FY 2022 and then 9 cents in FY 2023. Based on the current HomeCo Daily Needs share price of $1.47, this will mean yields of 5.4% and 6.1%, respectively.

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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