Fortunately for income investors, the ASX is not short of dividend-paying shares. This makes the share market a great place to generate passive income.
But which ASX dividend shares could be good options right now for an income boost? Two that have recently been rated as buys are named below:
Rio Tinto Ltd (ASX: RIO)
Rio Tinto could be an ASX dividend share to buy next week.
That's the view of analysts at Goldman Sachs, which believe the mining giant would be a great option for income investors. Particularly given its "compelling relative valuation vs. peers" and its "strong FCF and Div yield."
Goldman is expecting strong iron ore, aluminium and copper prices to underpin fully franked dividends per share of US$3.84 (A$5.78) in FY 2023 and then US$4.31 (A$6.48) in FY 2024. Based on the latest Rio Tinto share price of $114.69, this will mean yields of 5% and 5.65%, respectively.
Goldman currently has a conviction buy rating and a $130.70 price target on the miner's shares.
Rural Funds Group (ASX: RFF)
Another ASX dividend share that could be a buy right now is Rural Funds.
It is a property company that owns a $1.6 billion portfolio of diversified agricultural assets including almond and macadamia orchards, premium vineyards, water entitlements, and cattle and cropping assets. These are predominantly leased to corporate agricultural operators.
Bell Potter is positive on Rural Funds and believes its shares could be cheap after recent share price weakness.
The broker is also expecting some attractive dividend yields in the near term. It is forecasting dividends per share of 11.7 cents in both FY 2023 and FY 2024. Based on the current Rural Funds share price of $1.77, this will mean yields of 6.6%.
Bell Potter currently has a buy rating and a $2.20 price target on its shares.
