If you're an income investor looking for an income boost, then you may want to look at the ASX dividend shares listed below that currently feature on Morgans' best ideas list.
Here's what you need to know about these shares:
Mineral Resources Ltd (ASX: MIN)
Morgans is a big fan of this mining and mining services company and has it on its best ideas list again this month. The broker has an add rating and a $93 price target on its shares.
It believes the company is well-placed for growth in the coming years, particularly given its ideal exposure to China's reopening. It said:
MIN is a founder-led business and top tier miner and crusher that has grown consistently despite barely issuing a share over the last decade. Also helping our investment view is that MIN's diversification leaves it far more capable of tolerating volatility in lithium markets than its peers in the sector. We see MIN's lithium / iron ore market exposures as an ideal combination to benefit from the China re-opening increase in demand during 1H'CY23. We also see MIN as well placed to grow into its valuation, even if we see unexpected metal price volatility, given the magnitude of organic growth in the pipeline.
As for dividends, the broker is forecasting fully franked dividends of $1.81 per share in FY 2023 and $2.30 per share in FY 2024. Based on the current Mineral Resources share price of $73.39, this will mean yields of 2.5% and 3.1%, respectively.
Westpac Banking Corp (ASX: WBC)
Another ASX dividend share that the broker rates as a buy is Westpac. It has an add rating and a $24.22 price target on its shares.
Morgans is positive on the banking giant due to its belief that it has the best return on equity improvement potential among the big four. It said:
We view WBC as having the greatest potential for return on equity improvement amongst the major banks if its business transformation initiatives prove successful. The sources of this improvement include improved loan origination and processing capability, cost reductions (including from divestments and cost-out), rapid leverage to higher rates environment, and reduced regulatory credit risk intensity of non-home loan book. Yield including franking is attractive for income-oriented investors, while the ROE improvement should deliver share price growth.
In respect to dividends, the broker expects fully franked dividends of $1.49 per share in FY 2023 and $1.52 per share in FY 2024. Based on the current Westpac share price of $21.15, this will mean yields of 7% and 7.2%, respectively.
