If you're looking for a source of income and don't mind investing in the mining sector, then you may want to check out the ASX dividend shares listed below.
Here's what analysts are expecting from these mining shares:
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Deterra Royalties Ltd (ASX: DRR)
The first ASX mining share that could be a buy for dividends is Deterra Royalties.
As its name implies, Deterra Royalties operates a mining royalty business model. This involves the management and growth of a portfolio of royalty assets across a range of commodities, primarily focused on bulks, base and battery metals.
This includes the Mining Area C (MAC) iron ore operation which is co-owned with mining giant BHP Group Ltd (ASX: BHP) and the Yoongarillup mineral sands mines. It also has exposure to the Eneabba rare earths project, which has the potential to become a globally significant producer of rare earths.
The team at Citi is positive on Deterra Royalties and has a buy rating and $4.70 price target on its shares.
As for dividends, the broker is expecting fully franked dividends per share of 26 cents in FY 2023 and 28 cents in FY 2024. Based on the current Deterra Royalties share price of $4.75, this will mean yields of 5.5% and 5.9%, respectively.
South32 Ltd (ASX: S32)
Another ASX mining share that has been tipped to provide big dividend yields is South32.
South32 is a diversified mining and metals company producing a range of commodities. These include aluminium, copper, manganese, and nickel.
Analysts are Morgans are positive on South32 and see major upside potential and big dividends on the horizon. The broker likes South32 due to its portfolio transformation, which it believes is "substantially boosting group earnings quality, as well as S32's risk and ESG profile"
Morgans currently has an add rating and $5.30 price target on the miner's shares.
In respect to dividends, the broker has pencilled in fully franked dividends per share of 22.9 cents in FY 2023 and 21.5 cents in FY 2024. Based on the current South32 share price of $4.29, this will mean yields of 5.3% and 5%, respectively.
