Searching for dividend shares to buy? Listed below are two that the team at Morgans has slapped buy ratings on.
Here's what the broker is saying about them:
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Dexus Industria REIT (ASX: DXI)
Morgans thinks Dexus Industria could be a dividend share to buy. This is due to its attractive valuation and exposure to industrial and logistics assets.
The broker currently has an add rating and $3.25 price target on its shares. It commented:
DXI's portfolio is valued at $1.76bn and is weighted 79% towards industrial and logistics assets. The weighted average cap rate is 5.1%; WALE 5.9 years; and occupancy 97%. DXI is trading at a discount to NTA, offers an attractive yield with solid underlying portfolio metrics and has near/medium-term growth opportunities via the development pipeline.
Morgans is forecasting dividends per share of 16.4 cents in FY 2023 and 16.9 cents in FY 2024. Based on the latest Dexus Industria share price of $2.60, this will mean yields of 6.3% and 6.5%, respectively.
QBE Insurance Group Ltd (ASX: QBE)
Another dividend share to buy according to the broker is QBE. It feels the tide is turning for the insurance giant and the next few years could be very positive for the company and its shareholders.
Morgans has an add rating and $14.93 price target on its shares. The broker said:
With strong rate increases still flowing through QBE's insurance book, and further cost-out benefits to come, we expect QBE's earnings profile to improve strongly over the next few years. The stock also has a robust balance sheet and remains relatively inexpensive overall trading on ~9.1x FY23F PE
Its analysts are expecting dividends per share of 41.8 cents in FY 2022 and then 77 cents in FY 2023. Based on the latest QBE share price of $11.92, this will mean yields of 3.5% and 6.5%, respectively.
