Experts say these 2 ASX dividend shares are buys

Here are a couple of dividend shares rated as buys…

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

If you're aiming to lift your income with some dividend shares, then you might want to consider the two listed below.

Here's what you need to know about these dividend shares:

A couple working on a laptop laugh as they discuss their ASX share portfolio.

Image source: Getty Images

National Australia Bank Ltd (ASX: NAB)

The first ASX dividend share that could be a good option right now for income investors is this banking giant.

NAB appears well-placed to profit in the current environment with rates rising and its overweight exposure to commercial lending.

It is because of the latter that Goldman Sachs is positive on the bank. 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."

The broker currently has a buy rating and $34.63 price target on the bank's shares.

In addition, Goldman is expecting some attractive dividend yields from NAB's shares. It is forecasting a $1.50 per share dividend in FY 2023 and then a $1.70 per share dividend in FY 2024. Based on the current NAB share price of $30.24, this will mean fully franked yields of 5% and 5.6%, respectively.

South32 Ltd (ASX: S32)

It isn't just NAB that potentially offers decent upside and attractive yields. The same is being said about South32.

The diversified mining and metals company, which has operations spanning the likes of alumina, aluminium, copper, energy and metallurgical coal, manganese, nickel, silver, and zinc, has been tipped as a buy by analysts at Citi.

Following the release of South32's full year results, the broker commented that its "costs increases are modest; [and it is] still a cheap(ish) FY24 recovery play."

Citi has a buy rating and $4.65 price target on the company's shares.

As for dividends, the broker is forecasting a 28 cents per share dividend in FY 2023 and then a 34 cents per share dividend in FY 2024. Based on the current South32 share price of $4.14, this will mean fully franked yields of 6.8% and 8.2%, respectively.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Dividend Investing

Man holding fifty Australian Dollar banknotes in his hands, symbolising dividends.
Dividend Investing

3 top ASX dividend share buys for passive income in April

These are my top picks for dividends right now.

Read more »

Australian dollar notes in the pocket of a man's jeans, symbolising dividends.
Broker Notes

Are CBA shares still a good buy for passive income?

A leading analyst delivers his verdict on CBA’s passive income appeal.

Read more »

A man holding a cup of coffee puts his thumb up and smiles while at laptop.
Dividend Investing

2 defensive ASX dividend stocks for reliable income

I'd have these two defensive dividend shares in my portfolio to help hedge against sharemarket volatility.

Read more »

Woman holding $50 and $20 notes.
Dividend Investing

21 ASX shares going ex-dividend over the school holidays

Shares going ex-dividend include Myer and Washington H. Soul Pattinson & Company.

Read more »

Person handing out $100 notes, symbolising ex-dividend date.
Dividend Investing

$500 buys 148 shares in this 11% yielding ASX income stock!

I'd add this ASX income stock to my portfolio.

Read more »

A retiree relaxing in the pool and giving a thumbs up.
Dividend Investing

Looking for long-term passive income? Try one of these ASX shares

These businesses are on track to provide investors with ultra-long-term income.

Read more »

A man in a business suit stands on top of an office chair in a sea of murky water with shark fins circling.
Dividend Investing

Thinking of buying WAM Capital shares for the 9% dividend yield? Read this first

Look before you leap into this dividend stock.

Read more »

Person with a handful of Australian dollar notes, symbolising dividends.
Dividend Investing

1 ASX dividend share and 1 ASX growth stock to buy in April

These ASX shares deliver a one-two punch: income now, growth later.

Read more »