Given the increasing economic uncertainty that rising rates are causing across the world, it's understandable that some investors are looking for lower risk options.
If you're the same and also searching for a source of income, then you may want to check out the two ASX dividend shares listed below that could be considered as safe and reliable options.
Here's why analysts are positive on these dividend shares:
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Rural Funds Group (ASX: RFF)
This Australian agricultural property company could be an ASX dividend share to buy.
Rural Funds is the owner of a quality portfolio of assets across a number of agricultural industries such as orchards, vineyards, water entitlements, cropping, and cattle farms.
Many of these properties are leased to major industry players on long term agreements with periodic rental increases built in. This provides Rural Funds with great visibility on its future earnings and positions it to grow its dividend by its target rate of 4% each year.
Bell Potter is positive on the company and notes that its shares are trading at a "discount to adjusted NAV [that] reflects what historically would be considered an attractive entry point." The broker has a $2.75 price target on its shares.
As for dividends, it is forecasting an 11.7 cents per share dividend in FY 2023 and then a 12.7 cents per share dividend in FY 2024. Based on the current Rural Funds share price of $2.46, this represents yields of 4.75% and 5.15%, respectively.
Telstra Corporation Ltd (ASX: TLS)
Another ASX dividend share that could be a safe option for investors in 2023 is Telstra.
With competition in the telco market remaining rational, its successful T22 transformation creating a leaner operation, and new contracts having inflation-linked price increases built in, Telstra looks well-placed to continue its solid performance in the coming years.
And with Telstra's shares trading at 7x EV/EBITDA, analysts at Morgans believe they are great value at present. Particularly given their belief that "TLS's high quality long life assets like InfraCo are worth substantially more."
The good news is that the broker expects its recent restructure to unlock value in these assets. As a result, it has put an add rating and $4.60 price target on the company's shares.
In respect to dividends, the broker is expecting Telstra to continue to pay fully franked 16.5 cents per share dividends in FY 2023 and FY 2024. Based on the current Telstra share price of $4.03, this equates to yields of 4.1%.
