If you're on the lookout for some big dividend yields, then it could be worth checking out the two ASX dividend shares listed below.
Here's what analysts are saying about them:
Dexus Convenience Retail REIT (ASX: DXC)
The first ASX dividend share that could be a buy is Dexus Convenience Retail REIT.
Analysts at Bell Potter are bullish on the convenience retail and service station property fund and believe its shares are cheap at current levels. It said:
DXC is a convenience retail / service station REIT with a network of over 100 assets across the country predominantly leased to institutional and strong covenant tenants including Chevron, Viva, EG, Mobil and 7-Eleven. DXC trades at a circa 34% discount to stated NTA which we think is overly punitive for a sub-sector where there is clear price discovery (double digit number of asset sales for DXC at a blended 2-3% discount to book, and 65 market transactions in FY23), and investors for commercial real estate have a clear preference for smaller cheque size assets.
As for dividends, the broker is forecasting dividends per share of 20.9 cents in FY 2024 and 20.5 cents in FY 2025. Based on its current share price of $2.53, this equates to yields of 8.2% and 8.1%, respectively.
Bell Potter has a buy rating and a $2.85 price target on its shares.
Suncorp Group Ltd (ASX: SUN)
The team at Goldman Sachs thinks that Suncorp could be an ASX dividend share to buy right now.
It is the insurance giant behind a huge collection of brands including AAMI, Apia, Bingle, CIL Insurance, GIO, Shannons, Terri Scheer, and Vero.
Goldman believes that Suncorp is well-positioned for growth thanks to tailwinds in the general insurance market. It explains:
We are favourably disposed to Suncorp, noting in large part the tailwinds that exist in the general insurance market – i.e., very strong renewal premium rate increases and the benefit of higher investment yields. We think the strong rate momentum that SUN is getting should likely offset volume pressures as they optimise their risk exposures in certain portfolios such as home but also likely policy lapses / buy downs.
It expects this to allow the company to pay fully franked dividends per share of 75 cents in FY 2024 and 80 cents in FY 2025. Based on the current Suncorp share price of $13.73, this will mean yields of 5.5% and 5.8%, respectively.
Goldman has a buy rating and a $15.25 price target on the company's shares.
