Experts name 2 ASX dividend shares to buy with big fully franked yields

These dividend shares could be buys…

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Looking for dividend shares to buy this month? Then have a look at the ones listed below that have been given buy ratings and tipped to pay big dividends.

Here’s what you need to know about these dividend shares:

Australia and New Zealand Banking Group (ASX: ANZ)

This banking giant could be a dividend share to buy. Particularly given the positive outlook for interest rates in Australia and its solid performance so far in FY 2022. In respect to the latter, ANZ recently released its half-year results and reported cash earnings from continuing operations of $3,113 million. This represents a 4% increase over the prior corresponding period.

In response to its half-year update, the team at Citi maintained their buy rating and $30.75 price target on the bank’s shares.

In addition, the broker has pencilled in fully franked dividends per share of 147 cents in FY 2022 and then 170 cents in FY 2023. Based on the current ANZ share price of $25.85, this implies yields of 5.7% and 6.6%, respectively, over the next two years.

BHP Group Ltd (ASX: BHP)

Another ASX dividend share to look at is mining giant BHP. It is one of the world’s largest miners with a portfolio of world class operations across a number of commodities.

Thanks to strong commodity prices, these operations are generating high levels of free cash flow. And with BHP’s balance sheet remaining robust, the majority of this free cash flow is likely to find its way to shareholders in the form of dividends.

Citi is also very positive on BHP and has a buy rating and $56.00 price target on its shares.

It recently commented that there is “too much cash flow to ignore.” The broker expects this to underpin fully franked dividends per share of ~$4.86 in FY 2022 and then ~$4.89 in FY 2023. Based on the current BHP share price of $46.99, this implies yields of 10.3% and 10.4%, 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 Scott Phillips.

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