If you're looking to boost your passive income with some dividend shares, then you might want to look at the two listed below.
Both dividend shares are rated as buys and expected to provide investors with attractive yields in the near term. Here's what you need to know about them:
Healthco Healthcare and Wellness REIT (ASX: HCW)
The first ASX dividend share to look at is the Healthco Healthcare and Wellness REIT.
Goldman Sachs is a fan of this health and wellness focused real estate investment trust. This is due to its strong balance sheet, positive tenant mix, and the resilient valuations in the healthcare sector. It commented:
[T]he REIT remains one of our top picks in the sector given 1) its net cash position with over $450mn of liquidity, providing flexibility for near term opportunities, 2) its diversified mix of strong tenant covenants in sub-sectors that are majority government-backed across the care spectrum, mitigating potential tenant credit risks, 3) Healthcare and childcare assets valuations have remained resilient, 4) the expansive forecast future demand for assets across the care spectrum, underpinning development opportunities, and 5) inexpensive valuation.
Goldman has a conviction buy rating and $2.05 price target on its shares.
In addition, the broker is forecasting dividends per share of 7.5 cents in both FY 2023 and FY 2024. Based on the current Healthco Healthcare and Wellness REIT unit price of $1.69, this will mean yields of 4.4% for income investors.
Rural Funds Group (ASX: RFF)
Another ASX dividend share that could be a buy is Rural Funds.
It is an agricultural focused real estate investment trust (REIT) that owns a portfolio of assets across a number of agricultural industries. These include orchards, vineyards, water entitlements, cropping, and cattle farms.
Bell Potter is positive on the company and believes its shares are trading at a very inviting level. It recently commented:
Discounts of this magnitude to adjusted NVA have only been seen in the period after its compliance listing (2014-15) and following the issue of the Bonitas short report (in Aug-Sep'19). To this end the current discount to adjusted NAV reflects what historically would be considered an attractive entry point and we upgrade our rating from Hold to Buy.
The broker currently has a buy rating and $2.75 price target on Rural Funds 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.
