Earlier this month, we looked at a couple of ASX 200 dividend shares that Morgans has on its best ideas list right now. You can read about them here.
Moving on, let's take a look at a couple more dividend shares that the broker rates highly in the current environment. They are as follows:
HomeCo Daily Needs REIT (ASX: HDN)
This daily needs focused property company is on Morgans' best ideas list again this month. The broker likes the ASX 200 company due to its high occupancy rate, high quality customer base, and attractive dividend yield. It also sees plenty of growth opportunities through developments. It commented:
HDN's portfolio is valued at around $4.7bn across +50 assets with exposure to Large Format Retail; Neighbourhood; and Health & Services properties. Over the medium term it expects to reweight towards Neighbourhood. Portfolio metrics are solid: weighted average cap rate 5.3% (stable with the recent result); weighted average lease expiry +4 years and occupancy >99%. Top 3 tenants are Bunnings, Coles and Woolworths. HDN offers investors an attractive distribution yield which is underpinned by contracted rental income. Sites are also in strategic locations with strong population growth. The portfolio has exposure to 'last mile' logistics, as well as a significant land bank with future development potential (38% site coverage with a ~$600m development pipeline).
In respect to dividends, Morgans is forecasting dividends per share of 8.3 cents in FY 2023 and 8.4 cents in FY 2024. Based on the current HomeCo Daily Needs share price of $1.18, this will mean dividend yields of 7% and 7.1%, respectively.
Morgans has an add rating and $1.50 price target on its shares.
Wesfarmers Ltd (ASX: WES)
Another ASX 200 dividend share that Morgans rates highly is Wesfarmers. It is the conglomerate behind a range of businesses include Bunnings and Kmart. Morgans believes the company is well-placed in the current economic environment thanks to its focus on value. 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.
As for dividends, its analysts are forecasting fully franked dividends per share of $1.79 in FY 2023 and $1.92 in FY 2023. Based on the current Wesfarmers share price of $51.64, this will mean yields of 3.5% and 3.7%, respectively.
Morgans has an add rating and $55.60 price target on Wesfarmers' shares.
