Looking for an ASX dividend share or two to buy? Two that analysts at Morgans rate as buys and have on their best ideas list in December are listed below.
Here's what the broker is saying about them:
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Macquarie Group Ltd (ASX: MQG)
This investment bank remains a top pick for Morgans. The broker believes Macquarie is well-placed for the long term thanks partly to structural drivers. It commented:
We continue to like MQG's exposure to long-term structural growth areas such as infrastructure and renewables. The company also stands to benefit from recent market volatility through its trading businesses, while it continues to gain market share in Australian mortgages.
Morgans is expecting the investment bank to pay partially franked dividends of 705 cents per share in FY 2023 and 736 cents per share in FY 2024. Based on the current Macquarie share price of $180.24, this implies yields of 3.9% and 4.1%, respectively.
The broker also sees plenty of upside for its shares with its add rating and $214.30 price target.
Telstra Corporation Ltd (ASX: TLS)
Morgans also has this telco giant on its best ideas list.
This is due partly to its successful turnaround. The broker also believes that Telstra's recent restructure could unlock value for shareholders. It explained:
After a major turnaround, TLS has emerged in good shape with strong earnings momentum and a strong balance sheet. In late CY22 shareholders vote[d] on Telstra's legal restructure, which opens the door for value to be released. TLS currently trades on ~7x EV/EBITDA. However some of TLS's high quality long life assets like InfraCo are worth substantially more, in our view. We don't think this is in the price so see it as value generating for TLS shareholders. This, free option, combined with likely reputational damage to its closest peer, following a major cybersecurity incident, means TLS looks well placed for the year ahead.
As for dividends, it continues to forecast fully franked 16.5 cents per share dividends in FY 2023 and FY 2024. Based on the current Telstra share price of $4.00, this implies yields of 4.1%.
Morgans has an add rating and $4.60 price target on Telstra's shares.
