2 top ASX dividend shares experts rate as buys

Here are two dividend shares rated as buys…

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Are you looking for dividend shares to buy? If you are, then you might want to look at the shares listed below.

Here’s why these ASX dividend shares could be worth considering in May:

Dexus Industria REIT (ASX: DXI)

The first ASX dividend share that could be in the buy zone is Dexus Industria.

Dexus Industria, formerly known as APN Industria, is an industrial and office property company with a focus on properties that provide functional and affordable workspaces for businesses.

Morgans is very positive on the company and appears to believe it well-placed to deliver sustainable income and capital growth prospects for shareholders over the long term.

Its analysts are forecasting attractive dividends per share of 17.3 cents in FY 2022 and 17.6 cents in FY 2023. Based on the current Dexus Industria share price of $3.09, this will mean yields of 5.6% and 5.7%, respectively.

Morgans has an add rating and $3.65 price target on the company’s shares.

Westpac Banking Corp (ASX: WBC)

Another ASX dividend share that could be in the buy zone is Westpac.

Australia’s oldest bank has just released its half-year results for FY 2022 and revealed an 8% decline in revenue to $10,230 million, a 12% reduction in cash earnings to $3,095 million, and a 61 cents per share interim dividend. While on paper this doesn’t look great, it was actually ahead of the market’s expectations.

Another big positive from the result was that management continues to target a cost base of $8 billion by FY 2024. This was despite two of its peers admitting defeat on their own targets this month because of inflation.

This went down well with analysts at Citi and has them forecasting Westpac “delivering the strongest EPS growth in the sector” in the coming years. This is likely to bode well for dividends.

For example, Citi is forecasting fully franked dividends of 123 cents per share in FY 2022, 155 cents per share in FY 2023, and 180 cents per share in FY 2024. Based on the current Westpac share price of $24.65, this will mean yields of 5%, 6.3%, and 7.3%, respectively.

The broker also sees plenty of upside for the bank’s shares, with its buy rating and $29.00 price target.

Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. 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 recommended Westpac Banking Corporation. 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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