Big dividend yields are always nice, but what if we could get strong gains as well?
Well, I have some good news for you. Listed below are a couple of ASX dividend shares that analysts believe offer both of these.
Here's what you need to know:
HomeCo Daily Needs REIT (ASX: HDN)
The first ASX dividend share to look at is property company HomeCo Daily Needs.
It is focused on convenience-based assets across the target sub-sectors of Neighbourhood Retail, Large Format Retail and Health & Services.
The team at Morgans is positive on the company and has an add rating and $1.52 price target on its shares.
The broker highlights that HomeCo Daily Needs has significant development pipeline valued at over $500 million. It expects this to be supportive of solid growth in the future.
As for dividends, Morgans is forecasting dividends per share of 8.3 cents in FY 2023 and 8.5 cents in FY 2024. Based on the current HomeCo Daily Needs share price of $1.26, this will mean dividend yields of 6.6% and 6.75%, respectively.
Finally, the broker's price target suggests potential upside of 20%.
Westpac Banking Corp (ASX: WBC)
Another ASX dividend share that has been tipped as a buy is Westpac.
It is of course Australia's oldest bank and a member of the big four in Australia.
Goldman Sachs is a fan of the company and has a conviction buy rating and $27.68 price target on its shares.
The broker believes Westpac is well-placed to deliver solid earnings growth thanks to its cost reduction plans and rising interest rates.
It expects this to lead to fully franked dividends of 148.4 cents per share in FY 2023 and 160 cents per share in FY 2024. Based on the current Westpac share price of $23.84, this will mean yields of 6.2% and 6.7%, respectively.
Goldman's price target for Westpac implies potential upside of 16% for investors.
