Do you want a passive income boost? If you do, then the ASX dividend shares listed below that Citi rates as a buy could be the way to do it.
Here's why these could be passive income shares to buy now:
Transurban Group (ASX: TCL)
The first ASX share that could provide investors with a passive income boost is Transurban.
Citi believes the toll road operator could be a great option in the current environment due to its positive exposure to inflation. It commented:
With concerns around inflation being more sticky and higher for longer, we believe investors are likely to remain attracted to companies providing protection to rising inflation. We see TCL as being particularly attractive given ~70% of toll revenue is linked to inflation, downside protection to traffic even if we enter a recessionary period (given exposure to urban roads), and inorganic upside from the current and future development pipeline.
As for dividends, the broker is forecasting dividends per share of 53 cents in FY 2023 and then 56 cents in FY 2024. Based on the current Transurban share price of $13.81, this will mean yields of 3.8% and 4.1%, respectively.
Citi has a buy rating and $15.70 price target on its shares.
South32 Ltd (ASX: S32)
Another ASX dividend share that could give your passive income a lift is mining giant South32.
Citi is positive on the company and believes it could provide investors with big dividends in the near term. Particularly given favourable commodity prices. It recently said:
S32 DecQ prodn was a significant improvement on SepQ (although lower than Citi expectations) with FY23 prodn guidance maintained and FY23 unit cost expected to be in-line with or lower than guidance for most ops. With Citi's commodity team raising near term Cu/Al/Zn/HCC pricing, we've raised FY23/24 EPS and lifted TP to A$5.00 and stayed Buy rated.
In respect to dividends, the broker is forecasting fully franked dividends of 27 cents per share in FY 2023 and 31 cents per share in FY 2024. Based on the current South32 share price of $4.54, this will mean yields of 6% and 6.8%, respectively.
Citi has a buy rating and $5.00 price target on South32's shares.
