If you're looking for some ASX dividend shares to boost your passive income, then you may want to look at the two named below.
Here's why analysts rate these ASX dividend shares highly:
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Rural Funds Group (ASX: RFF)
Bell Potter believes that Rural Funds could be an ASX dividend share to buy right now.
The broker feels that the agricultural property company's shares are cheap as chips and is expecting some very attractive dividend yields in the coming years. It commented:
RFF is down ~39% from its Jan'22 peak a material underperformance relative to the XPJ, which is down ~21% over the same time frame. The underperformance has come despite double digit YOY gains in agricultural land values in CY22. In effect the current 31% discount to market NAV is implying a downward correction in property values comparable to that seen in US agricultural land values in 1932-33 and 1985-87.
As for dividends, the broker is expecting dividends per share of 11.7 cents in FY 2023 and 12.2 cents in FY 2024. Based on the current Rural Funds share price of $1.87, this will mean yields of 6.25% and 6.5%, respectively.
Bell Potter has a buy rating and $2.65 price target on its shares.
South32 Ltd (ASX: S32)
Another ASX dividend share that has been named as a buy is South32.
Goldman Sachs is bullish on the diversified miner and is expecting some huge dividend yields in the near term. It explained:
We upgrade S32 to Buy (from Neutral) on attractive valuation: Trading at ~0.95xNAV (A$4.6/sh) and on an implied TSR of ~29%, and an attractive NTM EV/EBITDA multiple of ~2.1x vs. the sector average of 4.5x. We assume the share buyback continues (at ~US$250mn p.a) and S32 pays out 50% of earnings (40% ordinary, 10% special dividend component) with the FY23 full year result. On our estimates, S32 is on a supportive dividend yield of c. 5% in FY23, increasing to 14% in FY24.
As mentioned above, Goldman Sachs is expecting a 5% dividend yield in FY 2023 and 14% in FY 2024.
The broker also sees plenty of upside for the South32 share price with its buy rating and $4.80 price target. The miner's shares were last trading at $4.06.
