If you're on the lookout for ASX dividend shares to boost your passive income, then you might want to consider the two named below.
Here's why analysts rate these ASX dividend shares highly:
Image source: Getty Images
Rural Funds Group (ASX: RFF)
The first ASX dividend share that could be a buy right now is Rural Funds. It is an agricultural property company with a high-quality portfolio of assets.
Bell Potter believes that Rural Funds shares could be cheap after recent share price weakness. 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 $1.83, this will mean yields of 6.4% and 6.65%, respectively.
Bell Potter currently has a buy rating and $2.65 price target on its shares.
Sonic Healthcare Limited (ASX: SHL)
Another ASX dividend share that has been named as a buy is Sonic Healthcare. It is a leading medical diagnostics company with operations across the world.
Citi is very positive on the company and was pleased with its recent acquisition. The broker also suspects that there could be more additions in the future given its strong balance sheet and opportunities in a fragmented market. It said:
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,
In respect to 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 $35.29, this will mean yields of 2.95% and 3.2%, respectively.
Citi currently has a buy rating and $40.00 price target on its shares.
