2 ASX dividend shares to buy this month: experts

GQG Partners is one of the ASX dividend shares rated as a buy.

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Key points

  • Brokers have picked two ASX dividend shares that could be income opportunities
  • GQG Partners is a large fund manager which is seeing fund inflows
  • Dexus Industria REIT has a diversified portfolio of properties

Experts have rated some ASX dividend shares as buys, which could be opportunities for income.

A business isn’t automatically a buy just because it pays a dividend. Brokers are also looking for investments that look like they’re good value.

At the current share prices, experts have rated these two businesses as buys:

GQG Partners Inc (ASX: GQG)

GQG Partners is a large funds management business that offers investors a few different investment strategies to choose from. These are international equity, global equity, emerging markets equity, and US equity.

This ASX dividend share recently updated the market to reveal that in April 2022, its funds under management (FUM) went from US$92.9 billion to US$90.4 billion amid the global share market volatility.

It’s currently rated as a buy by the broker Morgans with a price target of $2.15. That implies a possible increase of more than 50% over the next year on its current share price of $1.37. While the broker acknowledges share market volatility can hurt its FUM and earnings, it thinks the business is at a good price and it’s still seeing fund inflows.

In the quarter for the three months to 31 March 2022, the ASX dividend share saw net inflows of US$3.4 billion “despite an extremely challenging macro environment”. The company said it’s seeing business momentum across geographies and channels.

The “vast majority” of its revenue comes from management fees rather than performance fees.

The largest shareholders in GQG are its management team, which it says remains “highly aligned” with shareholders and is focused on GQG’s future.

Morgans thinks GQG is going to pay a dividend yield of 9.5% in FY23.

Dexus Industria REIT (ASX: DXI)

This is a real estate investment trust (REIT) that focuses on office and industrial properties. In its FY22 half-year result released in February, Dexus — formerly APN Industria REIT — revealed it had 93 properties that were valued at $1.78 billion.

One of its recent acquisitions includes the 33.3% interest in Jandakot Airport in Perth, an industrial precinct comprising 51 assets, approximately 80 hectares of developable land, and airport infrastructure operations.

The ASX dividend share said its weighted average lease expiry was 5.9 years, with a total occupancy rate of 97%. It also said that 74% of the portfolio income is contracted to grow by 3% or more.

Dexus Industria REIT’s net tangible assets (NTA) per security was $3.55.

The REIT says its portfolio is well-positioned to continue to benefit from structural trends like e-commerce growth, “just-in-case” inventory management, and a “significant upswing” in Australian manufacturing. It also said it wants to provide a reliable income stream.

It’s expecting to pay an annual distribution of 17.3 cents in FY22. That’s a distribution yield of 5.5%.

This ASX dividend share is rated as a buy by the broker Morgans with a price target of $3.65. The broker is expecting an FY23 distribution yield of 5.6% in FY23. It thinks that it has a good yield, solid financial measures, and a good outlook.

The Dexus Industria REIT ended Monday’s session at $3.11.

Motley Fool contributor Tristan Harrison 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 Scott Phillips.

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