If you're looking to boost your income portfolio this month, then you may want to look at the dividend shares listed below.
Here's why these ASX dividend shares have been tipped as buys by Goldman Sachs:
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Healthco Healthcare and Wellness REIT (ASX: HCW)
The first ASX dividend share to look at is the Healthco Healthcare and Wellness REIT.
As you might have guessed from its name, it is a real estate investment trust with a focus on health and wellness assets such as hospitals, aged care, childcare, life sciences, and primary care properties.
Goldman Sachs is very positive on the company and has a conviction buy rating and $2.05 price target on its shares.
The broker named four reasons that it is positive. It said:
[T]he REIT remains one of our top picks in the sector given 1) its net cash position with over $450mn of liquidity, providing flexibility for near term opportunities, 2) its diversified mix of strong tenant covenants in sub-sectors that are majority government-backed across the care spectrum, mitigating potential tenant credit risks, 3) Healthcare and childcare assets valuations have remained resilient, 4) the expansive forecast future demand for assets across the care spectrum, underpinning development opportunities, and 5) inexpensive valuation.
Goldman expects dividends per share of 7.5 cents in both FY 2023 and FY 2024. Based on the current Healthco Healthcare and Wellness REIT unit price of $1.59, this will mean yields of 4.7% for investors.
HomeCo Daily Needs REIT (ASX: HDN)
HomeCo Daily Needs is another real estate investment trust that Goldman Sachs is bullish on.
It has a focus on metro-located, convenience-based assets across neighbourhood retail, large format retail, and health and services.
The broker believes that its shares are cheap at current levels and has a buy rating and $1.57 price target on them. It commented:
We continue to believe HDN is undervalued at its current valuation given its diversified tenant base, and see it as well positioned to benefit from the shift to omni channel retailing, with additional external growth opportunities to drive earnings growth over the medium-term.
As for dividends, Goldman is forecasting dividends of 8.3 cents per share in FY 2023 and 8.5 cents per share in FY 2024. Based on the current HomeCo Daily Needs REIT unit price of $1.28, this will mean yields of 6.5% and 6.65%, respectively.
