Analysts say Pilbara Minerals and this ASX dividend share are buys

Now could be the time to for income investors to pounce on these dividend shares.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Are you looking for dividend shares to buy this week? If you are, then the two listed below could be worth checking out.

Both shares have been named as buys by analysts and have been tipped to provide attractive yields. Here's what you need to know about these dividend shares:

A cool young man walking in a laneway holding a takeaway coffee in one hand and his phone in the other reacts with surprise as he reads the latest news on his mobile phone

Image source: Getty Images

HomeCo Daily Needs REIT (ASX: HDN)

The first ASX dividend share that has been named as a buy is HomeCo Daily Needs.

HomeCo Daily Needs is a property investment company that focuses on convenience-based assets across neighbourhood retail, large format retail, and health and services.

The team at Morgans is bullish on the company due to the resilience of its cashflows, its huge development pipeline, and favourable trends. The latter includes the "accelerating click & collect trends."

In respect to dividends, the broker 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 $1.19, this will mean dividend yields of 7% and 7.1%, respectively.

Morgans has an add rating and $1.50 price target on HomeCo Daily Needs' shares.

Pilbara Minerals Ltd (ASX: PLS)

Another ASX dividend share that has been named as a buy is Pilbara Minerals. It is one of the world's largest lithium miners with some world class operations in Western Australia.

Although lithium prices have pulled back recently, they are still materially higher than the company's cost of production. This means it is still printing money right now, which bodes well for dividends.

For example, Citi expects this to lead to fully franked dividends per share of 25 cents in FY 2023, 16 cents in FY 2024, and 21 cents in FY 2025. Based on the latest Pilbara Minerals share price of $4.02, this equates to yields of 6.2%, 4%, and 5.2%, respectively.

Citi has an outperform rating and $4.60 price target on Pilbara Minerals' shares.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Dividend Investing

Woman flexes muscles after donating blood.
Healthcare Shares

CSL shares: 1 number that investors shouldn't ignore

This one number has me rethinking a CSL investment.

Read more »

Stacks of Australian dollar currency banknotes.
Dividend Investing

Up 40%! Are Woodside shares still a good buy for passive income now?

After soaring 40% this year, are Woodside’s fully-franked dividends still a good passive income investment?

Read more »

Person holding Australian dollar notes, symbolising dividends.
Dividend Investing

I'd buy 36,519 shares of this ASX stock to aim for $1,000 a month of passive income

This business is a top contender for providing passive income.

Read more »

Middle age caucasian man smiling confident drinking coffee at home.
Dividend Investing

3 top ASX dividend shares to buy now

One of these picks offers a potential 6.9% dividend yield.

Read more »

A businesswoman looks unhappy while she flies a red flag at her laptop.
Dividend Investing

This popular ASX dividend stock has a 10% yield. That's a problem

Not all is as it seems with this popular stock.

Read more »

Man holding out $50 and $100 notes in his hands, symbolising ex dividend.
Dividend Investing

This investment fund is paying a 7.2% dividend yield after solid results

Shareholders in this fund are in the money.

Read more »

A young woman sits with her hand to her chin staring off to the side thinking about her investments.
Dividend Investing

2 ASX shares with dividend yields above 8%

These ASX shares could be a good option for investors looking to add to their portfolio.

Read more »

Flying Australian dollars, symbolising dividends.
Resources Shares

Everything you need to know about the BHP dividend

This is how much BHP shareholders are going to be paid.

Read more »