Analysts say these high yield ASX dividend shares are buys

Analysts say these high yield dividend shares are buys…

| More on:
Happy young man and woman throwing dividend cash into air in front of orange background.

Image source: Getty Images

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

The Australian share market is home to a large number of dividend payers. However, some offer yields that are greater than average at present.

For example, two high yield ASX dividend shares that are rated as buys are listed below. Here's what you need to know about them:

National Australia Bank Ltd (ASX: NAB)

The first ASX dividend share that could be a good option right now for income investors is this banking giant.

NAB appears well-placed to profit in the current environment thanks to its strong position in commercial banking. In fact, it is for this reason that Goldman Sachs recently reiterated its buy rating with a $35.41 price target.

The broker notes that NAB provides "the best leverage to the thematic that domestic volume momentum will favour commercial over housing volumes over both the short- and medium-term."

Goldman expects this to underpin attractive dividend yields from NAB's shares in the coming years. It is forecasting a $1.73 per share dividend in FY 2023 and then a $1.78 per share dividend in FY 2024. Based on the current NAB share price of $31.35, this will mean fully franked yields of 5.5% and 5.7%, respectively.

New Hope Corporation Limited (ASX: NHC)

This coal miner could be a dividend share to buy thanks to sky high coal prices.

A note out of Morgans this week reveals that its analysts have retained their add rating with a $7.00 price target.

Its analysts believe that New Hope will be positioned to pay a massive $1.20 per share in FY 2023. Based on the current New Hope share price of $5.16, this represents a whopping fully franked 23% dividend yield for investors.

But it may not even stop there with the returns. The broker has suggested that "plausibly +$1.5bn ($1.59ps) is available for distribution via the announced onmarket buyback and dividends."

Looking further ahead, while the broker is forecasting a reduction in New Hope's dividend to a fully franked 75 cents per share in FY 2024, this still equates to a sizeable 14.5% yield.

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 no position in any of the stocks mentioned. 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

A mature-aged couple high-five each other as they celebrate a financial win and early retirement
Dividend Investing

5 top ASX dividend shares to buy right now

Analysts think income investors should be loading up on these shares.

Read more »

Two adults and a child look happy as they walk through airport with child sitting on suitcase.
Dividend Investing

Will Qantas shares pay a dividend in 2024?

Will the dividends return this year? Let's find out.

Read more »

A woman sits at her computer with her chin resting on her hand as she contemplates her next potential investment.
Dividend Investing

2 market-leading ASX dividend stocks to buy in April

Analysts have put buy ratings on these market-leaders.

Read more »

Father in the ocean with his daughters, symbolising passive income.
Dividend Investing

I'd spend $8k on these ASX 200 shares today to target a $6,102 annual passive income

I believe these ASX 200 shares will continue rewarding passive income investors for years to come.

Read more »

Man holding Australian dollar notes, symbolising dividends.
ETFs

Want the latest dividend from the Vanguard Australia Shares ETF (VAS)? Here's what you have to do

If you want to bag the latest VAS dividend, here's what you need to do.

Read more »

A smiling businessman in the city looks at his phone and punches the air in celebration of good news.
Dividend Investing

Investing for passive income? Keep any eye out for that boosted Telstra dividend today!

If you own Telstra shares, keep an eye out for that juicy dividend payout today.

Read more »

A happy construction worker or miner holds a fistfull of Australian money, indicating a dividends windfall
Dividend Investing

Invest $12,000 in Woodside stock and get $5,700 in passive income

Reliable dividend shares are everywhere on the ASX. Here's how you could use that to your advantage.

Read more »

Australian dollar notes in businessman pocket suit, symbolising ex dividend day.
Dividend Investing

3 ASX 300 dividend shares to buy in April

These shares have been named as buys by brokers and tipped to offer very attractive yields.

Read more »