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 high yield dividend shares:
HomeCo Daily Needs REIT (ASX: HDN)
The first ASX dividend share that could be a top option for investors is HomeCo Daily Needs.
It is a property investment company with a focus predominantly on metro-located, convenience-based assets across the sub-sectors of neighbourhood retail, large format retail, and health and services.
HomeCo Daily Needs was on form in FY 2022, delivering a 30% increase in funds from operations per unit last week. This went down well with analysts at Goldman Sachs, which declared the result a "strong" one.
In addition, the broker believes that its shares are cheap at current levels. It commented:
We continue to 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.
Goldman has a buy rating and $1.63 price target on the company's shares.
But it gets better. The broker is forecasting dividends of 8.3 cents per share in FY 2023 and 8.5 cents per share in FY 2024. Based on the current HomeCo Daily Needs REIT unit price of $1.29, this will mean big yields of 6.4% and 6.6%, respectively.
Whitehaven Coal Ltd (ASX: WHC)
Another ASX dividend share that is highly rated is coal miner Whitehaven Coal.
With the price of the black gold forecast to remain strong for some time to come, the company has been tipped to deliver bumper profits in the near term.
This is expected to lead to "supercharged returns" for shareholders according to analysts at Morgans. At present, the broker has an add rating and $8.60 price target on the company's shares. Though, it sees scope for them to run even higher. The broker commented:
We see strong potential for a more prolonged dislocation in energy markets where supply security commands a higher premium for longer. WHC offers ~2%/24% upside to our base/bull case pricing scenarios (excluding growth assets) with clear upside risks to valuation and dividends. Note that thermal coal futures pricing currently sits well above our "super-bull" price scenario, which supports an NPV towards $11.00ps.
As for dividends, Morgans is forecasting dividends per share of 100 cents in FY 2023 and 64 cents in FY 2024. Based on the latest Whitehaven Coal share price of $7.97, this will mean yields of 12.5% and 8%, respectively.
