Are you looking for a passive income boost? If you are, then you might want to look at these buy-rated ASX dividend shares.
Here's why analysts are tipping them as buys:
Centuria Industrial REIT (ASX: CIP)
The first ASX dividend share to consider is Centuria Industrial. It is a property company with a focus on high quality industrial assets that deliver income and capital growth to investors.
In FY 2023, Centuria Industrial has been experiencing strong nationwide demand for industrial space. For example, earlier this month, Fund Manager and Centuria Head of Industrial, Jesse Curtis, said:
CIP remains in a strong position moving into the final quarter of FY23. With a fortified balanced sheet and a high-quality portfolio of urban infill industrial assets, CIP is well placed to continue to take advantage of the positive sector tailwinds driving the industrial real estate market. We remain very confident in the underlying industrial market fundamentals and are focused on executing our strategy through active management of Australia's largest listed pure play industrial REIT.
In response, UBS revealed that it is expecting Centuria Industrial to pay dividends per share of 16 cents in both FY 2023 and FY 2024. Based on the current Centuria Industrial share price of $3.16, this represents yields of 5% in both financial years.
The broker has a buy rating and $3.68 price target on its shares.
Sonic Healthcare Limited (ASX: SHL)
Another ASX dividend share to look at is Sonic Healthcare. It is a leading medical diagnostics company with operations across the world.
Over the last 30+ years Sonic has earned a reputation for excellence in pathology, diagnostic imaging, and primary care medical services. This is across operations spanning the ANZ, European and North American markets.
But management is never one to rest on its laurels. It recently announced a major acquisition, which went down well with analysts at Citi. The broker commented:
SHL announced a binding agreement to acquire Diagnosticum, a laboratory group in southeast Germany with 15 labs and 25 pathologists. SHL will pay €190m (cash, debt free) / ~A$310m. […] The transaction is in-line with the company's long-term strategy of deploying capital through acquisitions (>40 since FY07). SHL estimates that the top-5 players in Germany only have a 40-50% market share (SHL being #1), leaving room for further consolidation. We rate SHL Buy,
As for dividends, the broker is forecasting fully franked dividends per share of 104 cents in FY 2023 and then 112 cents in FY 2024. Based on the current Sonic share price of $35.34, this will mean yields of 2.95% and 3.2%, respectively.
Citi has a buy rating and $40.00 price target on its shares.
