2 top ASX dividend shares to buy according to analysts

Analysts are positive on these dividend shares…

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If you’re looking for dividend shares to buy then you may want to look at the ones below that brokers are recommending.

Here’s what brokers are saying about these ASX dividend shares:

BHP Group Ltd (ASX: BHP)

The first ASX dividend share to look at is mining giant BHP.

While operating conditions have been tough this year due to labour shortages and rising fuel costs, this is being offset by sky high commodity prices. So much so, BHP is being tipped to generate huge sums of free cash flow again in FY 2022.

And due to the strength of its balance sheet, the majority of this free cash flow looks set to be returned to shareholders through dividends.

Goldman Sachs is very positive on the company and recently put a buy rating and $51.20 price target on the Big Australian’s shares. Its analysts note that BHP has an “attractive valuation & FCF, and upside from ~US$20bn Copper growth pipeline.”

As for dividends, the broker is forecasting fully franked dividend yields of over 10% in FY 2022 and FY 2023.

Telstra Corporation Ltd (ASX: TLS)

Another ASX dividend share for income investors to look at is this telco giant.

After years of struggles, Telstra revealed underlying earnings growth during the first half of FY 2022 thanks to the success of its T22 strategy.

The good news for investors is that Telstra will soon embark on its T25 strategy. While T22 was about transforming the company, T25 has been designed to underpin solid earnings growth.

Analysts at Morgans have been pleased with the company’s plans and have put an add rating and $4.56 price target on its shares.

In respect to dividends, Morgans is forecasting fully franked dividends per share of 16 cents in FY 2022 and FY 2023. Based on the current Telstra share price of $3.75, this will mean yields of 4.25%.

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 positions in and has recommended Telstra Corporation Limited. 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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