Get an income boost with these ASX dividend shares: broker

The team at Morgans says these dividend shares could give your passive income a boost…

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Wanting a passive income boost? If you are, then you may want to consider the two dividend shares listed below.

Both are rated as buys by Morgans and tipped to provide investors with attractive dividend yields in the near term. Here's what you need to know about them:

A young female investor with brown curly hair and wearing a yellow top and glasses sits at her desk using her calculator to work out how much her ASX dividend shares will pay this year

Image source: Getty Images

Coles Group Ltd (ASX: COL)

The first ASX dividend share that Morgans has tipped as a buy is Coles.

Its analysts are positive on the supermarket giant due to its defensive qualities, favourable changes in consumer shopping trends, and its solid balance sheet. It commented:

We continue to see COL as offering good value with the company's solid balance sheet and defensive characteristics putting it in a good position to navigate through a weaker economic environment. The unwinding of local shopping should also help further market share gains.

Morgans has an add rating and $19.50 price target on its shares.

As for dividends, the broker is expecting fully franked dividends per share of 64 cents in FY 2023 and 66 cents in FY 2024. Based on the current Coles share price of $17.93, this implies yields of 3.55% and 3.7%, respectively.

Mineral Resources Ltd (ASX: MIN)

Another ASX dividend share that Morgans rates as a buy is Mineral Resources.

Its analysts like the mining and mining services company due to its exposure to lithium and iron ore. It believes they are an ideal combination to benefit from the China re-opening. The broker said:

We see MIN's lithium / iron ore market exposures as an ideal combination to benefit from the China re-opening increase in demand during 1H'CY23. We also see MIN as well placed to grow into its valuation, even if we see unexpected metal price volatility, given the magnitude of organic growth in the pipeline.

Morgans currently has an add rating and $99.40 price target on its shares.

In respect to dividends, Morgans is forecasting fully franked dividends of $4.04 per share in FY 2023 and $6.21 per share in FY 2024. Based on the current Mineral Resources share price of $89.65, this will mean 4.5% and 6.9% dividend yields, 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 positions in and has recommended Coles Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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