Are you looking for divided shares to buy? If you are, then take a look at the two listed below that Morgans rates as buys.
Here's what the broker is saying about these dividend shares:
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Dexus Industria REIT (ASX: DXI)
Morgans is a big fan of this industrial property company and has named it as a dividend share to buy with an add rating and $3.25 price target.
The broker likes the company due to its exposure to key industrial markets, which remain robust and have a solid rental growth outlook backed by strong tenant demand. Its analysts also highlight that the company's development pipeline provides near and medium term upside potential.
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.
As for dividends, Morgans is expecting dividends per share of 16.4 cents in FY 2023 and 16.9 cents in FY 2024. Based on the current Dexus Industria share price of $2.49, this will mean yields of 6.6% and 6.8%, respectively.
Santos Ltd (ASX: STO)
Another ASX dividend share that Morgans is positive on is Santos. The broker currently has an add rating and $9.30 price target on its shares.
Morgans believes that Santos is well-placed for growth in the current environment. It explained:
The resilience of STO's growth profile and diversified earnings base see it well placed to outperform against a backdrop of a broader sector recovery. While pre-FEED, we see Dorado as likely to provide attractive growth for STO, while its recent acquisition increasing its stake in Darwin LNG has increased our confidence in Barossa's development. PNG growth meanwhile remains a riskier proposition, with the government adamant it will keep a larger share of economic rents while operator Exxon has significantly deferred growth plans across its global portfolio.
In respect to dividends, the broker is forecasting dividends per share of 22.1 cents in FY 2022 and 29.7 cents in FY 2023. Based on the latest Santos share price of $7.53, this will mean yields of 2.9% and 3.9%, respectively.
