Morgans has been busy picking out the best shares to buy this month.
If ASX dividend shares are what you're looking for, then you may want to check out the two listed below.
Here's what its analysts are saying about these dividend shares:
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Dalrymple Bay Infrastructure Ltd (ASX: DBI)
Morgans has this coal terminal operator on its best ideas list and has an add rating and $2.67 price target on its shares. It believes its strong market position will allow the company to pay some big dividends in the near term.
For example, in FY 2023, the broker is forecasting a 21 cents per share dividend. This represents a sizeable 8.4% dividend yield at current levels. The broker commented:
DBI holds the 99 year lease to the 85 Mtpa Dalrymple Bay Coal Terminal, of which c.80% of throughput is metallurgical coal (used in steelmaking). DBCT offers the cheapest export route-to-market for users within its Bowen Basin catchment region. DBCT is fully contracted from 2023 to 2028. Following the successful outcome to its customer tariff negotiations, DBI should be able to deliver resilient, inflation-linked, and very high margin revenues and has provided distribution guidance that implies c.8% cash yield growing at 3-7% pa.
Santos Ltd (ASX: STO)
Another ASX dividend share to buy according to Morgans is Santos. It believes the energy producer is well-placed thanks to its diversified earnings and resilient growth profile. The broker has an add rating and $8.75 price target.
As for dividends, it is expecting Santos to reward its shareholders with a 40.4 cents per share dividend in FY 2023. This equates to a 5.8% dividend yield for investors. Morgans said:
The resilience of STO's growth profile and diversified earnings base see it well placed to outperform against the backdrop of a broader sector recovery. While pre-FEED, we see Dorado as likely to provide attractive growth for STO, while its recent acquisition increasing its stake in Darwin LNG has increased our confidence in Barossa's development. PNG growth meanwhile remains a riskier proposition, with the government adamant it will keep a larger share of economic rents while operator Exxon has significantly deferred growth plans across its global portfolio.
