If you're looking for dividend shares to buy, then Morgans has you covered.
Listed below are two ASX dividend shares to buy this month according to its analysts. Here's what they are saying:
Image source: Getty Images
Dalrymple Bay Infrastructure Ltd (ASX: DBI)
Morgans is a fan of this coal terminal operator and was very pleased with its recent FY 2022 results. The good news is that it is expecting the company to build on this in the coming years, allowing it to pay some big dividends. The broker commented:
It commented:
The FY22 result delivered the substantial earnings growth we were expecting following finalisation of Terminal Infrastructure Charge (TIC) negotiations in 2H22. DPS guidance had already been provided and was unchanged (albeit the growth outlook was not reaffirmed).
The broker currently has an add rating and $2.63 price target on the company's shares.
Its analysts are forecasting dividends per share of 21 cents in FY 2023 and 22 cents in FY 2024. Based on the latest Dalrymple Bay Infrastructure share price of $2.52, this will mean yields of 8.3% and 8.7%, respectively.
Universal Store Holdings Ltd (ASX: UNI)
Another ASX dividend share that Morgans has named as a buy is youth fashion retailer Universal Store.
The broker was also impressed with its recent results, noting that "1H23 sales rose 35% to $146m, 5% above our estimate." Pleasingly, Morgans is confident that there's more solid growth to come thanks to its exposure to younger consumers. It said:
The early performance in 2H23 suggests the customer continues to spend. The cost of living pressures expected to weigh on discretionary expenditure in Australia in the months ahead certainly apply to UNI's youthful customer base, although they are likely to be more resilient than other demographics given they are less likely to have a mortgage to service.
Morgans has an add rating and $7.00 price target on its shares.
As for dividends, the broker is forecasting fully franked dividends per share of 30 cents in FY 2023 and 35 cents in FY 2024. Based on the current Universal Store share price of $5.59, this will mean yields of 5.4% and 6.25%, respectively.
