If you're searching for dividend shares to buy, then the two listed below could be worth looking at.
Both have been named as buys by analysts at Morgans and tipped to provide big yields. Here's what you need to know:
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Dexus Industria REIT (ASX: DXI)
The first ASX dividend share that Morgans rates as a buy is Dexus Industria. It is an industrial and office property company.
The broker believes that Dexus Industria is well-placed for growth thanks to strong demand in the industrial market.
Morgans currently has an add rating and $3.25 price target on the company's shares. It commented:
DXI's key industrial markets remain robust with the outlook for solid rental growth backed by strong tenant demand. The development pipeline also provides near and medium term upside potential. A key focus will be the leasing up of the business park assets and a potential divestment could be a positive catalyst. While the portfolio remains well positioned we acknowledge there will be near-term uncertainty around interest rates.
In respect to dividends, the broker is forecasting 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 $2.63, this will mean yields of 6.2% and 6.4%, respectively.
Incitec Pivot Ltd (ASX: IPL)
Another ASX dividend share that Morgans rates as a buy is Incitec Pivot. It is a manufacturer and distributor of industrial explosives, industrial chemicals, and fertilisers to the agriculture and mining industries.
Morgans believes the company is positioned to benefit from high fertiliser prices and the economic recovery. It also sees positives from its demerger plans.
The broker has an add rating and $4.45 price target on the company's shares. It said:
With fertiliser prices holding at historically high levels and possibly moving higher over coming months given Russia's invasion of the Ukraine, which is increasing gas prices, soft commodity prices and impacting fertiliser supply chains, the fundamentals for IPL are very positive. It is also benefiting from favourable seasonal conditions in Australia. It also has strong exposure to an economic recovery through its explosives business (solid demand for resources and Q&C will benefit from US stimulus packages). IPL believes that its demerger plans of its Fertilisers (Incitec Pivot Fertilisers) and Explosives (Dyno Nobel) businesses to create two separately listed companies on the ASX will create further value for shareholders.
As for dividends, Morgans is expecting fully franked dividends per share of 25 cents in FY 2022 and 19 cents in FY 2023. Based on the current Incitec Pivot share price of $3.64, this will mean yields of 6.9% and 5.2%, respectively.
