Are you looking for dividend options for your income portfolio? If you are, then take a look at the two ASX dividend shares listed below that have been tipped as buys.
Here's why experts are positive on them:
Dexus Industria REIT (ASX: DXI)
The first ASX dividend share to consider buying is Dexus Industria. It is an industrial and office property company.
The team at Morgans is positive on the company. It currently has an add rating and $3.25 price target on the company's shares. The broker commented:
DXI's key industrial markets remain robust with the outlook for solid rental growth backed by strong tenant demand. The development pipeline also provides near and medium term upside potential. A key focus will be the leasing up of the business park assets and a potential divestment could be a positive catalyst. While the portfolio remains well positioned we acknowledge there will be near-term uncertainty around interest rates.
As for dividends, the broker is forecasting dividends per share of 16.4 cents in FY 2023 and 16.9 cents in FY 2024. Based on the current Dexus Industria share price of $2.77, this will mean yields of 5.9% and 6.1%, respectively.
Elders Ltd (ASX: ELD)
Another ASX dividend share to look at is Elders. It is an agribusiness company that provides a range of services to rural and regional customers across the ANZ region.
Analysts at Goldman Sachs are very positive on the company. They recently reiterated their conviction buy rating with a lofty $21.00 price target on its shares. The broker commented:
We view ELD as well-positioned to achieve continued organic growth through market rationalisation and margin expansion as the company executes on the backward integration strategy, which it is c.50% of the way through. Organic growth looks set to be complemented by further bolt-on acquisitions, with c.620 independents in the Australian market with a steady stream of founders now looking at succession or exit opportunities. We forecast a further +7% EBIT growth in FY23 vs. Bloomberg consensus of -13%.
In respect to dividends, the broker is forecasting dividends per share of 50 cents in FY 2022 and 53 cents in FY 2023. Based on the current Elders share price of $11.82, this would mean yields of 4.2% and 4.5%, respectively.
