Goldman Sachs names 2 ASX dividend shares to buy now

Here's why Goldman Sachs has named these top dividend shares as buys…

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Are you looking for dividend shares to buy this week? If you are, then the two named below could be worth checking out.

Both have been named as buys by Goldman Sachs and tipped to provide investors with attractive yields. Here's what you need to know about them:

Close-up photo of a back jean pocket with Australian dollar bills in it and a hand reaching in to collect the notes

Image source: Getty Images

National Australia Bank Ltd (ASX: NAB)

The first ASX dividend share to look at is NAB. Goldman Sachs is very positive on this big four bank and currently has a buy rating and $35.60 price target on its shares.

Goldman Sachs likes NAB due to its exposure to commercial lending, which the broker believes will perform relatively better than home lending in the current environment. Its analysts "see volume momentum over the next 12 months as favouring commercial volumes over housing volumes and NAB provides the best exposure to this thematic."

In respect to dividends, Goldman is forecasting fully franked dividends of $1.66 per share in FY 2023 and $1.73 per share in FY 2024. Based on the current NAB share price of $31.48, this implies yields of 5.3% and 5.5%, respectively.

Universal Store Holdings Ltd (ASX: UNI)

Another ASX dividend share that has been tipped as a buy is Universal Store. Goldman Sachs currently has a buy rating and $7.55 price target on its shares.

It is a growing retailer focused on youth fashion through the Universal Store and Thrills brands.

Goldman Sachs is a fan of the company due to the company's exposure to younger consumers, which it expects to continue spending in 2023 thanks to minimum wage increases and their lower exposure to rising interest rates.

In addition, the broker sees "an opportunity for ongoing store roll-out for UNI which is the market leader in youth multi-brand apparel."

As for dividends, the broker is expecting fully franked dividends of 27.2 cents in FY 2023 and 29.9 cents in FY 2024. Based on the latest Universal Store share price of $5.80, this equates to yields of 4.7% and 5.15%, respectively.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Dividend Investing

A man happily kisses a $50 note scrunched up in his hands representing the best ASX dividend stocks in Australia today
Dividend Investing

3 ASX 200 dividend shares that just hiked their payouts

The dividends are flowing from these stocks...

Read more »

Australian dollar notes and coins in a till.
Dividend Investing

Everything you need to know about the Woolworths dividend

Woolworths investors are in line for a pay rise.

Read more »

Piles of coins with rising arrows.
Dividend Investing

How many Woolworths shares do I need to earn $10,000 per year in passive income?

The supermarket giant is a long-standing ASX dividend stock.

Read more »

Ascending piles of coins and plants in three jars, with a hand putting a coin in the first jar.
Dividend Investing

3 ASX dividend shares that pay their investors every single month

These ASX dividend shares pay their shareholders like clockwork.

Read more »

Excited woman holding out $100 notes, symbolising dividends.
Dividend Investing

I'd buy 164,557 shares of this ASX stock to aim for $500 a week of passive income

This stock is a great option for regular passive income.

Read more »

Numerous Australian dollar notes laid out.
Dividend Investing

How many Woodside shares do I need to buy to earn $10,000 a year in passive income?

Atop its soaring share price, I think Woodside is an attractive passive income investment.

Read more »

Person handing out $100 notes, symbolising ex-dividend date.
Dividend Investing

Everything you need to know about the Coles dividend

Here are the details of the latest payout from Coles.

Read more »

A wad of $100 bills of Australian currency lies stashed in a bird's nest.
Dividend Investing

These 3 ASX income shares just hiked their dividends

A big cheque is just around the corner for these investors.

Read more »