The team at Morgans has recently named a number of its best ideas for investors.
Among those ideas are a couple of dividend shares that income investors may want to look closely at.
Here's what the broker is saying about these ASX dividend shares:
Dexus Industria REIT (ASX: DXI)
Morgans is tipping this industrial and office property company as a dividend share to buy.
The broker is a fan of the company and believes that it is well-placed for growth in the current environment thanks to strong demand in the industrial market. It stated:
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.
The broker currently has an add rating and $3.25 price target on the company's shares. As for dividends, it 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 $2.88, this will mean yields of 5.7% and 5.85%, respectively.
Santos Ltd (ASX: STO)
Another ASX dividend share that Morgans rates as a buy is Santos.
It is a leading energy producer and, thanks to its recent merger with Oil Search, the owner of a collection of high quality operations that are aiming to deliver production of 103-106 million barrels of oil equivalent this calendar year.
Morgans likes the company due to its production growth potential and diversified earnings base. It commented:
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.
Morgans has an add rating and $9.00 price target on its shares. As for dividends, it is forecasting dividends per share of 22.8 cents in FY 2022 and 24.2 cents in FY 2023. Based on the current Santos share price of $7.25, this will mean yields of 3.1% and 3.35%, respectively.
