Investors looking for income options might want to check out the two ASX dividend shares listed below.
Both of these shares have just been tipped as buys with attractive forecast dividend yields. Here's what brokers are saying about them:
Healthco Healthcare and Wellness REIT (ASX: HCW)
The first ASX dividend share to look at is the Healthco Healthcare and Wellness REIT. It is a real estate investment trust with a focus on hospitals, aged care, childcare, life sciences, and primary care properties.
Analysts at Goldman Sachs are very positive on the company. They recently responded to its full year results by putting a conviction buy rating and $2.08 price target on its shares. The broker said:
[T]he REIT remains one of our top picks in the sector given 1) its net cash position with over $450mn of liquidity, providing flexibility for near term opportunities, 2) its diversified mix of strong tenant covenants in sub-sectors that are majority government-backed across the care spectrum, mitigating potential tenant credit risks, 3) Healthcare and childcare assets valuations have remained resilient, 4) the expansive forecast future demand for assets across the care spectrum, underpinning development opportunities, and 5) inexpensive valuation.
In respect to dividends, Goldman expects dividends per share of 7.5 cents in both FY 2023 and FY 2024. Based on the current Healthco Healthcare and Wellness REIT unit price of $1.77, this will mean yields of 4.2% for investors.
QBE Insurance Group Ltd (ASX: QBE)
Another ASX dividend share that could be in the buy zone right now is insurance giant QBE.
In response to the company's recent half year results, the team at Morgans retained its add rating with a $14.93 price target on its shares. The broker commented:
With strong rate increases still flowing through QBE's insurance book, investment yields improving and further cost-out benefits to come, we expect QBE's earnings profile to improve strongly over the next few years. The stock also remains relatively inexpensive trading on ~10x FY22F PE. ADD maintained.
As for dividends, its analysts are expecting a 41.5 cents per share dividend in FY 2022 and then a 76.5 cents per share dividend in FY 2023. Based on the latest QBE share price of $12.05, this equates to yields of 3.4% and 6.3%, respectively
