The good news for income investors is that 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 at Morgans are listed below. Here's why they have been rated as buys:
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Super Retail Group Ltd (ASX: SUL)
The first ASX dividend share that has been tipped as a buy by Morgans is Super Retail. It is the retail conglomerate behind brands such as Macpac and Supercheap Auto.
Morgans recently retained its add rating on the retailer's shares with an improved price target of $13.00.
The broker was pleased with Super Retail's full year results and remains positive on its prospects in the first half of FY 2023. It notes that there are "no signs yet that the consumer is pulling back in Australia."
In light of this, the broker is forecasting some big dividend yields in the coming years. Morgans expects fully franked dividends per share of 56 cents in FY 2023 and 58 cents in FY 2024. Based on the latest Super Retail share price of $9.24, this will mean yields of 6.1% and 6.3%, respectively.
Whitehaven Coal Ltd (ASX: WHC)
Another ASX dividend share that is highly rated by Morgans is coal miner Whitehaven Coal.
Morgans believes that sky high coal prices could lead to "supercharged returns" for shareholders in the coming years. At present, the broker has an add rating and $8.60 price target on the company's shares.
And while this is close to where the Whitehaven Coal share price trades today, Morgans does see scope for it to trade even higher. It notes that "thermal coal futures pricing currently sits well above our "super-bull" price scenario, which supports an NPV towards $11.00ps."
As for dividends, Morgans is forecasting some mouth-watering yields in the near term. It is expecting dividends per share of 100 cents in FY 2023 and 64 cents in FY 2024. Based on the latest Whitehaven Coal share price of $8.45, this will mean yields of 12.5% and 8%, respectively.
