If you're looking for a passive income boost to combat the cost of living crisis, then read on!
Listed below are three of the best ASX dividend shares to buy now according to analysts at Morgans.
Here's why putting your money to work in these shares could be a good idea right now:
Dalrymple Bay Infrastructure Ltd (ASX: DBI)
The first ASX dividend share to buy according to Morgans is Dalrymple Bay Infrastructure. The broker has an add rating and $2.63 price target on its shares.
It believes the coal terminal operator is well-placed to pay some big dividends in the coming years. It commented:
DBI holds the 99 year lease to the 85 Mtpa Dalrymple Bay Coal Terminal, of which c.80% of throughput is metallurgical coal (used in steelmaking). DBCT offers the cheapest export route-to-market for users within its Bowen Basin catchment region. DBCT is fully contracted from 2023 to 2028. Following the successful outcome to its customer tariff negotiations, DBI should be able to deliver resilient, inflation-linked, and very high margin revenues and has provided distribution guidance that implies c.8% cash yield growing at 3-7% pa.
As for income, it is forecasting dividend yields of 8.1% and 8.45% in FY 2023 and FY 2024, respectively.
Dexus Industria REIT (ASX: DXI)
Another passive income share to buy according to Morgans is this industrial property company. It has an add rating and $3.37 price target on its shares.
The broker likes the company due to its attractive valuation and yield, as well as the positive outlook for industrial property. It explained:
DXI's portfolio is valued at $1.6bn across 93 properties and is weighted 89% towards industrial and logistics assets. The weighted average cap rate is around 5.1%; WALE +6 years; and occupancy 97.4%. DXI is trading at a discount to NTA, offers an attractive yield with solid underlying portfolio metrics and has near/medium term growth opportunities via the development pipeline as well as rental growth via its industrial portfolio. Gearing is around 23%.
Morgans is forecasting dividend yields of 6.15% in FY 2023 and 6.25% in FY 2024.
Universal Store Holdings Ltd (ASX: UNI)
Finally, another passive income option for investors is this youth fashion retailer. Morgans has an add rating and $7.00 price target on its shares.
It likes the company due to its exposure to younger consumers, which it expects to continue spending despite the tough economic environment. It commented:
Universal Store (UNI) is one of the largest and fastest growing fashion retailers in Australia. Through a national network of over 100 stores and a successful online platform, UNI curates a diverse range of men's and women's fashion, shoes and accessories from local and international brands as well as its own private labels. UNI's stores trade under the Universal Store, Perfect Stranger and THRILLS banners. UNI has opportunities to grow steadily through the rollout of bricks and mortar stores, increased digital penetration and expansion of wholesale channels. While we recognise the general risk around a decline in consumer expenditure on discretionary categories like apparel, we highlight that the youth demographic is likely to be more resilient.
In respect to dividends, Morgans expects fully franked dividend yields of 5.9% in FY 2023 and 6.85% in FY 2024.
