If you're searching for ASX dividend shares to buy for a passive income, then the two listed below could be worth looking at.
Both have been tipped as buys with meaningful upside potential and attractive future yields.
Here's what you need to know about them:
Baby Bunting Group Ltd (ASX: BBN)
The first ASX dividend share that has been named as a buy is Baby Bunting. If you're a parent, there's a good chance you'll have shopped at one of this baby products retailer's superstores. And with management intent on growing its network further in the coming years, more and more parents will be following suit in the future.
While FY 2023 has been tough for Baby Bunting, Morgans believes investors should stick with the company. It has add rating and $3.60 price target on its shares.
The broker believes that Baby Bunting's margin pressures in FY 2023 are transitory and highlights its "compelling opportunities to grow its share of a growing market."
As for dividends, Morgans is forecasting fully franked dividends per share of 14 cents in FY 2023 and then 16 cents in FY 2024. Based on the current Baby Bunting share price of $2.66, this will mean yields of 5.25% and 6%, respectively.
South32 Ltd (ASX: S32)
Another ASX dividend share that has been named as a buy is South32. It is a diversified mining and metals company with exposure to a range of commodities including aluminium, copper, manganese, and nickel.
Morgans is also feeling positive on South32. So much so, it has an add rating and $5.30 price target on the mining giant's shares.
Its analysts like South32 largely due to its portfolio transformation, which has given it exposure to the decarbonisation megatrend. It also believes the transformation is "substantially boosting group earnings quality, as well as S32's risk and ESG profile"
In respect to dividends, Morgans is expecting South32 to pay 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 $4.10, this will mean yields of 5.6% and 5.25%, respectively.
