The good news for income investors is that there are a number of quality ASX dividend shares to choose from on the Australian share market.
Two that have been tipped as buys are listed below. Here's what analysts are saying about them:
Dalrymple Bay Infrastructure Ltd (ASX: DBI)
The first ASX dividend share that has been named as a buy is Dalrymple Bay Infrastructure.
This Australian infrastructure company is the long term operator of the Dalrymple Bay Coal Terminal (DBCT), which provides terminal infrastructure and services for producers and consumers of Australian coal.
It appears well-placed to pay bumper dividends in the near term thanks to the strong demand for coal and its position as the cheapest export route-to-market for users within its Bowen Basin catchment region.
Morgans is a fan and has an add rating and $2.67 price target on its shares.
As for dividends, its analysts are forecasting dividends per share of ~21 cents in FY 2022 and FY 2023. Based on the latest Dalrymple Bay Infrastructure share price of $2.45, this will mean yields of 8.6%.
Rural Funds Group (ASX: RFF)
Another ASX dividend share that could be in the buy zone is Rural Funds.
It is a property company that owns a portfolio of assets across a number of agricultural industries such as orchards, vineyards, water entitlements, cropping, and cattle farms.
As these are leased to major industry players on long term agreements with periodic rental increases built in, Rural Funds appears well-placed to grow its earnings and dividends each year.
Bell Potter is a fan of the company and has a $2.75 price target on its shares.
In respect to 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 $2.40, this represents yields of 4.9% and 5.3%, respectively.
