Later today, the Reserve Bank of Australia is widely expected to lift rates again. So, if you're looking for a passive income boost to combat increasing rates, you may want to consider the two ASX dividend shares named below that experts rate highly.
Here's why they say these ASX dividend shares are buys right now:
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Telstra Corporation Ltd (ASX: TLS)
The first ASX dividend share that could be a buy is Australia's largest telco, Telstra.
Morgans is a big fan of the company and has an add rating and $4.60 price target on its shares. The broker likes Telstra due to its successful transformation, rational competition, and its ongoing restructure. The latter could unlock value for shareholders from the sale of infrastructure assets.
In respect to dividends, the broker is expecting Telstra to continue paying fully franked 16.5 cents per share dividends in both FY 2023 and FY 2024. Based on the current Telstra share price of $4.14 this equates to yields of 4%.
Universal Store Holdings Ltd (ASX: UNI)
Another ASX dividend share that has been tipped as a buy is youth fashion retailer Universal Store.
The team at Goldman Sachs is bullish on the company and has a buy rating and $7.55 price target on its shares.
The broker likes Universal Store due to store rollout opportunities and its exposure to younger consumers. It expects the latter to continue spending in 2023 thanks to minimum wage increases and their lower exposure to rising interest rates.
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 $5.64, this equates to yields of 4.8% and 5.3%, respectively.
