If you're looking for ASX dividend shares to buy for passive income, then the two listed below could be worth looking at.
Both have been tipped as buys with meaningful upside potential and attractive future yields. Here's what you need to know:
Baby Bunting Group Ltd (ASX: BBN)
The first ASX dividend share to look at is leading baby products retailer Baby Bunting.
Although the company has been having a very tough time in FY 2023 and its shares have been crushed, the team at Ord Minnett remains positive and sees its share price weakness as a buying opportunity.
The broker recently retained its buy rating with a $3.30 price target.
Its analysts expect the company's performance to improve in the second half. After which, it is expecting a return to profit growth in FY 2024.
Ord Minnett believes this will lead to fully franked dividends per share of 11 cents in FY 2023 and then 15 cents in FY 2024. Based on the current Baby Bunting share price of $2.42, this will mean yields of 4.5% and 6.2%, respectively.
Rural Funds Group (ASX: RFF)
Another ASX dividend share that has been named as a buy is Rural Funds.
It is an agricultural focused real estate investment trust (REIT) with a portfolio of assets including orchards, vineyards, water entitlements, cropping, and cattle farms.
Bell Potter is a fan of the company and believes the current discount to adjusted NAV reflects what would historically be considered an attractive entry point for investors. It has a buy rating and $2.75 price target on Rural Funds shares.
As for dividends, the broker is expecting an 11.7 cents per share dividend in FY 2023 and then a 12.7 cents per share dividend in FY 2024. Based on the current Rural Funds share price of $2.40, this represents yields of 4.9% and 5.3%, respectively.
