If you're looking for ASX dividend shares to buy, then the two listed below could be worth considering.
Here's what you need to know about these dividend shares:
HomeCo Daily Needs REIT (ASX: HDN)
The first ASX dividend share to look at is the HomeCo Daily Needs REIT. This property company invests in convenience-based assets across neighbourhood retail, large format retail, and health and services.
Goldman Sachs is a fan of the company and has a buy rating and $1.70 price target on its shares. It recently 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."
The broker also expects larger than average dividends in the near term. It is forecasting dividends per share of 8 cents in FY 2022 and 9 cents in FY 2023. Based on the current HomeCo Daily Needs share price of $1.33, this will mean dividend yields of 6% and 6.75%, respectively.
Wesfarmers Ltd (ASX: WES)
Another ASX dividend share to consider is Wesfarmers. It is the conglomerate behind brands such as Kmart, Officeworks, Priceline, Catch, Bunnings, and a wide range of industrial businesses.
Morgans is a fan of the company and has an add rating and $58.50 price target on its shares. It commented: "WES possesses one of the highest quality retail portfolios in Australia with strong brands including Bunnings, Kmart, Target and Officeworks. The company is run by a highly regarded management team and the balance sheet is healthy. While Covid-related staff shortages are proving to be a challenge, the core Bunnings division (>60% of group EBIT) remains a solid performer as consumers continue to invest in their homes. We see the recent pullback in the share price as a good entry point for longer term investors."
As for dividends, Morgans is forecasting fully franked dividends per share of $1.62 in FY 2022 and $1.81 in FY 2023. Based on the current Wesfarmers share price of $46.31, this will mean yields of 3.5% and 3.9%, respectively.
