Are you looking for dividend shares to buy now? If you are, then you might want to look at the shares listed below that have been tipped as buys.
Here's why these ASX dividend shares are rated highly:
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National Australia Bank Ltd (ASX: NAB)
The first ASX dividend share that could be a top option for income investors is banking giant NAB.
It has been rated as a buy by analysts at Goldman Sachs. The broker currently has a buy rating and $34.63 price target on the bank's shares.
Goldman likes NAB because it sees "volume momentum over the next 12 months as favouring commercial volumes over housing volumes and NAB provides the best exposure to this thematic."
In addition, it highlights that "NAB has delivered the highest levels of productivity over the last three years." The broker thinks this "leaves it well positioned for an environment of elevated inflationary pressure."
As for dividends, Goldman is forecasting a $1.50 per share dividend in FY 2022 and then a $1.70 per share dividend in FY 2023. Based on the current NAB share price of $31.32, this will mean fully franked yields of 4.8% and 5.4%, respectively.
Rio Tinto Limited (ASX: RIO)
Another ASX dividend share to look at is mining giant Rio Tinto.
Citi is a fan of the company and has a buy rating and $120.00 price target on its shares. It likes Rio Tinto due to its attractive valuation and strong free cash flow.
The broker highlights that its free cash flow is "still robust and RIO trades on CY23/24E EV/EBITDA of 3.4/3.7x."
Citi is expecting this strong free cash flow generation to underpin fully franked dividends of approximately $8.32 per share in FY 2022 and $9.43 per share in FY 2023. Based on the current Rio Tinto share price of $96.74, this will mean yields of 8.6% and 9.7%, respectively.
