If you're looking for dividend options, then it could be worth checking out the two listed below.
These ASX dividend shares have been named as best ideas for the month of October by analysts at Morgans. Here's why the broker is bullish on them:
QBE Insurance Group Ltd (ASX: QBE)
The first ASX dividend share that Morgans has on its best ideas list is insurance giant QBE. It has a price target of $17.16 on its shares, which implies an upside of 9%.
The broker believes that QBE has a positive outlook thanks to its rate increases and cost reductions. It said:
With strong rate increases still flowing through QBE's insurance book, and further cost-out benefits to come, we expect QBE's earnings profile to improve strongly over the next few years. The stock also has a robust balance sheet and remains relatively inexpensive overall trading on 8x FY24F PE.
As for dividends, Morgans expects QBE to pay dividends per share of 66 cents in FY 2023 and then 93 cents in FY 2024. This will mean dividend yields of 4.2% and 5.9%, respectively, if the broker's forecasts prove accurate.
Transurban Group (ASX: TCL)
Morgans also has this toll road giant on its best ideas list with a price target of $13.86. This implies a potential upside of 11% from current levels.
The broker believes Transurban is well-placed for growth in the coming years. It explains:
TCL owns a pure play portfolio of toll road concession assets located in Melbourne, Sydney, Brisbane, and North America. This provides exposure to regional population and employment growth and urbanisation. [..] We think TCL will continue to be attractive to investors given its market cap weighting (important for passive index tracking flows), the high quality of its assets, management team, balance sheet, and growth prospects.
Morgans is forecasting dividends per share of 63 cents in FY 2024 and 66 cents in FY 2025. Based on the current Transurban share price of $12.45, this implies yields of 5% and 5.3%, respectively.