The good news for income investors is that there are a large number of quality ASX dividend shares to choose from on the Australian share market.
Two that have been tipped as best buys by analysts at Morgans are listed below. Here's what the broker is saying about them:
GQG Partners Inc (ASX: GQG)
Morgans believes this fund manager's shares could be great value right now. And with the potential yield on offer with its shares looking very attractive, it appears to see it as a dividend share to buy. It has an add rating and $1.93 price target. The broker commented:
GQG's strong relative investment outperformance through the current market weakness should solidify the near-term flows outflow. GQG has diversified earnings (by strategy and clients); solid performance track-record; and ongoing growth prospects. In our view, the current ~12x PE (versus a sector med-term average of ~16x) is attractive.
As for dividends, Morgans is expecting dividends per share of 11.3 cents in FY 2023 and then 12.5 cents in FY 2024. Based on the current GQG share price of $1.40, this will mean 8.1% and 8.9% yields, respectively.
Wesfarmers Ltd (ASX: WES)
The broker is also a fan of this conglomerate and sees it as one of the best ASX dividend shares to buy now. Morgans is positive on the Bunnings owner due to the quality of its retail portfolio and its highly regarded leadership team. Its analysts also believe Wesfarmers is well-placed in the current environment due to its value-offering. In light of this, the broker has put an add rating and $55.50 price target on its shares. It explained:
WES possesses one of the highest quality retail portfolios in Australia with strong brands including Bunnings, Kmart and Officeworks. The company is run by a highly regarded management team and the balance sheet is healthy. We believe WES's businesses, which have a strong focus on value, remain well-placed for growth despite softening macro-economic conditions.
In respect to dividends, its analysts are forecasting fully franked dividends per share of $1.79 in FY 2023 and $1.91 in FY 2024. Based on the latest Wesfarmers share price of $48.83, this will mean yields of 3.7% and 3.9%, respectively.
