Analysts name 2 ASX dividend shares to buy this month

Analysts are feeling bullish on these dividend shares…

| 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

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:

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

Image source: Getty Images

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.

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 Broker Notes

Wooden blocks spelling rebound with coins on top.
Broker Notes

Can Life360 shares recover from the AI fuelled sell-off?

A leading expert looks into the AI-driven pressure hitting Life360 shares.

Read more »

An engineer takes a break on a staircase and looks out over a huge open pit coal mine as the sun rises in the background.
Broker Notes

Up 49% in a year, should you buy BHP shares for their 'stability and income'?

A leading expert delivers his forecast for BHP’s fast-rising shares.

Read more »

A financial expert or broker looks worried as he checks out a graph showing market volatility.
Broker Notes

Buy, hold, sell: Pro Medicus, Life360, A2 Milk shares

Expert analysts reveal their latest recommendations on 3 ASX 200 stocks.

Read more »

A woman sits in a cafe wearing a polka dotted shirt and holding a latte in one hand while reading something on a laptop that is sitting on the table in front of her
Broker Notes

Buy, hold, sell: Goodman Group, BHP, Westpac shares

ASX 200 shares are in the red for a fifth consecutive session amid stalled peace talks between the US and…

Read more »

Business man marking Sell on board and underlining it
Broker Notes

Experts name 3 ASX 200 shares to sell now

Let's see which shares are being tipped as sells this week.

Read more »

A man and a woman sit in front of a laptop looking fascinated and captivated.
Broker Notes

What is Morgans' updated view on Bank of Queensland and PLS shares?

These ASX 200 stocks are performing very differently this year.

Read more »

A construction worker sits pensively at his desk with his arm propping up his chin as he looks at his laptop computer.
Broker Notes

Are these ASX materials stocks a buy, hold or sell according to Morgans?

Morgans is optimistic on these shares.

Read more »

A man holding a cup of coffee puts his thumb up and smiles with a laptop open.
Broker Notes

Analysts pick 3 ASX 200 stocks to buy

These stocks have been given buy ratings this week. Here's what you need to know about them.

Read more »