Brokers have been running the rule over a number of ASX dividend shares.
Two that have been given the thumbs up recently are listed below. Here's what you need to know about them:
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Dexus Industria REIT (ASX: DXI)
Dexus Industria could be an ASX dividend share to buy. It is an industrial property company with a portfolio of high-quality assets.
Morgans is a big fan of the company. It believes that Dexus Industria is well-placed for growth thanks to strong demand in the industrial market and its development pipeline. It commented:
DXI is trading at a discount to NTA, offers an attractive yield with solid underlying portfolio metrics and has near/medium term growth opportunities via the development pipeline as well as rental growth via its industrial portfolio.
In respect to dividends, the broker is forecasting dividends per share of 16.4 cents in FY 2023 and 16.6 cents in FY 2024. Based on the current Dexus Industria share price of $2.75, this will mean yields of 5.9% and 6%, respectively.
Morgans currently has an add rating and a $3.30 price target on the company's shares.
Lottery Corporation Ltd (ASX: TLC)
Lottery Corporation could be another ASX dividend share to buy. It is the lottery operator behind the Powerball and Oz Lotto brands.
Citi is a fan of the company. It highlights that recent price increases and third-party commission cuts could have a significant impact on margins. The broker said:
The Lottery Corporation (TLC) lottery earnings can be volatile depending on jackpots but are defensive over time with no correlation to the business cycle. We expect last year's Oz Lotto changes to result in a material revenue lift as the jackpot sequence normalises. We believe the market underestimates the uplift to the contribution margin following the increase in the commission rate and cut to third party digital commissions. The potential introduction of cashless gaming in NSW is unlikely to drive higher wallet share for lotteries given international experience and differing player profiles between EGMs and lotteries.
As for dividends, the broker is forecasting a 15 cents per share dividend in FY 2023 and 18 cents per share dividend in FY 2024. Based on the Lottery Corp share price of $5.15, this will mean fully franked yields of 2.9% and 3.5%, respectively.
Citi has a buy rating and a $5.70 price target on its shares.
