The good news for income investors in 2023 is that the Australian share market is home to plenty of companies that pay dividends to their shareholders.
Two that could be top options for income investors to buy next year are listed below. Here's what analysts are saying about these ASX dividend shares:
HomeCo Daily Needs REIT (ASX: HDN)
The first ASX dividend share that has been named as a buy for income investors is HomeCo Daily Needs.
It is a property investment company with a focus on metro-located, convenience-based assets across neighbourhood retail, large format retail, and health and services.
Analysts at Morgans are very positive on the company due to its attractive distribution yield, "which is underpinned by contracted rental income". In addition, the broker notes that HomeCo Daily Needs has "exposure to 'last mile' logistics, as well as a significant land bank with future development potential (38% site coverage with a ~$500m development pipeline)".
In respect to dividends, the broker is forecasting dividends per share of 8.3 cents in FY 2023 and 8.7 cents in FY 2024. Based on the current HomeCo Daily Needs share price of $1.30, this will mean dividend yields of 6.4% and 6.7%, respectively.
Morgans has an add rating and $1.52 price target on HomeCo Daily Needs' shares.
Wesfarmers Ltd (ASX: WES)
Another ASX dividend share that experts have tipped as a buy is Wesfarmers.
It is the conglomerate responsible for a collection of businesses including retailers Bunnings, Kmart, Priceline, and Officeworks. In addition, it has a portfolio of strong chemicals and industrials businesses.
Morgans is also positive on Wesfarmers. This is thanks to the strength of this portfolio and its high-quality management team.
Morgans expects these qualities to support solid earnings and dividend growth in the coming years. For example, its analysts are expecting fully franked dividends per share of $1.82 in FY 2023 and $1.89 in FY 2024. Based on the current Wesfarmers share price of $45.74, this will mean yields of 4% and 4.1%, respectively.
Morgans currently has an add rating and $55.60 price target on its shares.
