Analysts say these top ASX dividend shares are buys right now

Analysts have named these top dividend shares as buys…

| 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

Looking for some dividend shares to add to your income portfolio? If you are, you may want to look at the two listed below.

Both have been rated as buys by analysts and tipped to provide investors with big dividends. Here's what you need to know about these ASX dividend shares:

Woman holding $100 Australian notes representing dividends.

Image source: Getty Images

HomeCo Daily Needs REIT (ASX: HDN)

The first ASX dividend share to look at is the HomeCo Daily Needs REIT.

HomeCo Daily Needs is a growing property company that invests in convenience-based assets across the neighbourhood retail, large format retail, and health and services sub-sectors.

Goldman Sachs is a fan of the company and believes its shares are "undervalued at its current valuation given its diversified tenant base." The broker also sees HomeCo Daily Needs' portfolio as "well positioned to benefit from secular trends toward last-mile fulfilment offerings."

In respect to dividends, the broker is forecasting dividends per share of 8.3 cents in FY 2023 and 8.5 cents in FY 2024. Based on the current HomeCo Daily Needs share price of $1.16, this will mean dividend yields of 7.1% and 7.3%, respectively.

Goldman has a buy rating and $1.57 price target on its shares.

Telstra Corporation Ltd (ASX: TLS)

Another ASX dividend share that has been tipped to provide income investors with a generous dividend yield is telco giant Telstra.

After battling through a difficult time over the last decade, at long last there is light at the end of the tunnel for the company and its shareholders. In fact, that light is shining very brightly after a return to growth in FY 2022.

The good news is that the company's new T25 strategy is expected to underpin further solid growth in the coming years, which could be good news for its dividend payments.

For now, though, Morgans is expecting Telstra to continue to pay fully franked 16.5 cents per share dividends in FY 2023 and FY 2024. Based on the current Telstra share price of $3.85, this equates to yields of 4.3%.

Morgans has an add rating and $4.60 price target on the company's shares.

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 positions in and has recommended Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Dividend Investing

Man holding fifty Australian Dollar banknotes in his hands, symbolising dividends.
Dividend Investing

3 star ASX dividend income stocks for the rest of 2026

I rate these businesses as strong income buys.

Read more »

Children skipping and jumping up a hill.
Dividend Investing

Want passive income? These ASX dividend shares offer 5%+ yields

These companies grow their payouts over time.

Read more »

A golden egg with dividend cash flying out of it
Dividend Investing

These ASX dividend shares keep giving investors a pay rise

I think these businesses are excellent options for regular payout growth.

Read more »

A graphic of a pink rocket taking off above an increasing chart.
Dividend Investing

$1,000 buys 23 shares in an incredibly reliable ASX 200 dividend stock

This business offers incredible reliability with dividends.

Read more »

A happy elderly man wearing a red cape smiles as he jumps up like a hero from a massage table.
Dividend Investing

3 ASX dividend stocks I'd buy if I were a retiree

Reliable dividends often come from predictable demand. These three stocks highlight where that stability can be found.

Read more »

Beautiful young couple enjoying in shopping, symbolising passive income.
Dividend Investing

3 ASX dividend shares to build a passive income

Looking for passive income? These shares have been named as buys by analysts.

Read more »

One hand giving $100 notes to another hand, symbolising ex-dividend date.
Dividend Investing

An ASX dividend stalwart every Australian should consider buying

This is the right time to invest in this impressive stock.

Read more »

ATM with Australian hundred dollar notes hanging out.
Dividend Investing

How to dollar-cost average your way to passive income with ETFs

You don't need a lump sum to build a dividend income stream, just a plan and the discipline to stick…

Read more »