Looking for dividend shares to buy this month? If you are, then you might want to look at the shares listed below.
Here’s why these ASX dividend shares are rated as buys:
National Australia Bank Ltd (ASX: NAB)
The first ASX dividend share that could be in the buy zone in July is banking giant NAB. Particularly given recent market volatility, which has dragged its shares notably lower.
One broker that sees a lot of value in the NAB share price following the recent weakness is Goldman Sachs. Its analysts recently reiterated their conviction buy rating with an improved price target of $34.26.
Goldman believes NAB’s balance sheet mix provides the best exposure to the domestic system growth over the next 12 to 18 months.
As for dividends, the broker is forecasting a $1.51 per share dividend in FY 2022 and then a $1.68 per share dividend in FY 2023. Based on the current NAB share price of $27.39, this will mean fully franked yields of 5.5% and 6.1%, respectively.
Transurban Group (ASX: TCL)
Another ASX dividend share that could be a top option for income investors in July is Transurban.
The leading toll road operator appears well-placed for growth thanks to its portfolio of important roads and its pipeline of development projects.
In addition, analysts at Morgans are very positive on Transurban due to its exposure to regional population and employment growth and urbanisation. In light of this, Morgans has put at add rating and $14.42 price target on its shares.
The broker is also forecasting a rebound in dividends in the coming years. It expects dividends per share of 37 cents in FY 2022 and then 60 cents in FY 2023. Based on the current Transurban share price, this implies yields of 2.6% and 4.2%, respectively.