When it comes to dividend shares, the Australian share market isn't short of options. But with so much choice, it can be hard to decide which ones to buy over others.
The good news is that the team at Morgans has done the hard work for investors and picked out some of the best dividend shares to buy now.
Here's why these dividend shares make Morgans' best ideas list:
Dexus Industria REIT (ASX: DXI)
The first ASX dividend share that has been given the thumbs up from Morgans is Dexus Industria.
It is the owner of a high quality portfolio of industrial properties. These properties are in-demand with end users, which is supporting strong earnings and attractive dividend payments.
The broker currently has a buy 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 $2.40, this will mean yields of 6.8% and 7%, respectively.
HomeCo Daily Needs REIT (ASX: HDN)
Another ASX dividend share that Morgans has put on its best ideas list is HomeCo Daily Needs.
As its name implies, this property company has a focus on daily needs. These include neighbourhood retail properties, retail parks, and healthcare properties.
Morgans currently has an add rating and $1.56 price target on its shares. It explained:
HDN offers investors an attractive distribution yield which is underpinned by contracted rental income. Sites are also in strategic locations with strong population growth. The portfolio has exposure to 'last mile' logistics, as well as a significant land bank with future development potential (38% site coverage with a ~$500m development pipeline).
In respect to dividends, the broker expects dividends per share of 8.3 cents in FY 2023 and 8.7 cents in FY 2024. Based on the latest HomeCo Daily Needs share price of $1.14, this will mean yields of 7.2% and 7.6%, respectively.
