There are a large number of dividend shares for investors to choose from on the Australian share market.
Two that have done enough to impress analysts are listed below. Here's why they have been given the thumbs up:
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Healthco Healthcare and Wellness REIT (ASX: HCW)
The first ASX dividend share that analysts are tipping as a buy is the Healthco Healthcare and Wellness REIT.
As its name implies, this real estate investment trust has a focus on hospitals, aged care, childcare, life sciences, and primary care properties.
The team at Goldman Sachs is very positive on the company and recently named it as one of its top picks in the sector. This is due to its robust balance sheet and strong tenant base. Goldman explained:
[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.
The broker currently has a conviction buy rating and $2.08 price target on its shares.
As for dividends, its analysts are forecasting 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 $1.66, this will mean yields of 4.5% for investors.
Whitehaven Coal Ltd (ASX: WHC)
Another ASX dividend share that analysts are tipping as a buy is coal miner Whitehaven Coal.
It is expected to provide investors with some very big dividend yields in the near term thanks to sky high coal prices. In fact, the team at Morgans has described them as "supercharged returns." It 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.
The broker currently has an add rating and $8.60 price target on the company's shares.
In respect to 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 $8.31, this will mean yields of 12% and 7.7%, respectively.
