Do you want a passive income boost? If you do, then the ASX dividend shares listed below that experts have named as buys could help you.
Here's why these could be passive income shares to buy now:
Image source: Getty Images
South32 Ltd (ASX: S32)
The first ASX dividend share that has been named as a buy is mining giant South32.
Morgans was impressed with its recent half-year result and notes that its earnings came in comfortably ahead of expectations. The broker commented:
Broad cost pressures remain for S32, but not as much as the market expected, with the company comfortably beating earnings expectations in 1H23. Lower FX was a key driver for the beat, while some further moderation in cost pressures could help 2H23. S32 remains confident that the quantum of development capex for the Taylor's Deposit has not changed since its mid-2021 PFS.
In response, the broker maintained its rating and $5.60 price target.
Its analysts expect this to underpin fully franked dividends per share of approximately 17.4 cents in FY 2023 and 22 cents in FY 2024. Based on the current South32 share price of $4.41, this will mean yields of 3.9% and 5%, respectively.
Transurban Group (ASX: TCL)
Another ASX dividend share for investors to consider is toll road operator Transurban.
Citi was pleased with its half-year results earlier this month and believes there's more to come. Particularly given its positive exposure to inflation. It explained:
We believe TCls' 7.5% FY23 DPS guidance beat was driven by a range of one-off factors, along with improved traffic recovery. While this is positive for near term, longer term estimates remain largely unchanged. However, CPI-linked increases come through with a delay indicating a strong growth path ahead and we forecast c.6% p.a. DPS CAGR from FY23-FY26.
The broker has a buy rating and $16.00 price target on its shares.
In addition, Citi is now forecasting dividends per share of 58 cents in FY 2023 and then 60 cents in FY 2024. Based on the current Transurban share price of $14.12, this will mean yields of 4.1% and 4.25%, respectively.
