Are you looking for some income options for when the market reopens next week?
If you are, then check out these ASX dividend shares listed below. They have recently been tipped as buys by analysts. Here's what they are saying about them:
Challenger Ltd (ASX: CGF)
Goldman Sachs is tipping this annuities company as be an ASX dividend share to buy.
It likes the company due to its exposure to the massive superannuation market and the favourable outlook for annuities demand. It explains:
CGF is Australia's largest retail and institutional annuity provider across Term and Lifetime annuities with a funds management business. We are Buy rated on the stock. We like CGF because: 1) it has exposure to the growing superannuation market across Life and Funds Management; 2) higher yields should drive a favorable sales environment for retail annuities as well as an improvement in margins; 3) its annuity book growth looks well supported through a diversified distribution strategy.
In respect to dividends, the broker is forecasting fully franked dividends of 26 cents per share in FY 2024 and 27 cents per share in FY 2025. Based on the current Challenger share price of $6.89, this will mean dividend yields of 3.8% and 3.9%, respectively.
The broker currently has a buy rating and $7.50 price target on its shares.
Dexus Industria REIT (ASX: DXI)
Analysts at Morgans see Dexus Industria as an ASX dividend share to buy when the market reopens. It is a real estate investment trust with a focus on industrial warehouses.
Morgans believes the company is positioned to benefit from solid demand for industrial property, its development pipeline, and the positive rental growth outlook. It said:
The portfolio is valued at $1.6bn across +90 properties with 89% of the portfolio weighted towards industrial assets (WACR 5.38%). The portfolio's WALE is around 6 years and occupancy 97.5%. Across the portfolio 50% of leases are linked to CPI with the balance on fixed increases between 3-3.5%. While we expect cap rates to expand further in the near term, DXI's industrial portfolio remains robust with the outlook positive for rental growth. The development pipeline also provides near and medium-term upside potential and post asset sales there is balance sheet capacity to execute.
As for income, Morgans is forecasting dividends per share of 16.4 cents in FY 2024 and then 16.6 cents in FY 2025. Based on the current Dexus Industria share price of $2.89, this will mean dividend yields of 5.7% and 5.75%, respectively.
The broker has an add rating and $3.20 price target on its shares.
Worley Ltd (ASX: WOR)
The team at Goldman Sachs is also positive on this engineering company.
It believes the company is well-positioned to benefit from the decarbonisation megatrend and sees a lot of value in its shares at current levels. It said:
WOR is well positioned to play a role in enabling the transition from fossil fuels to a more sustainable energy mix in the LT, leveraging its experience in providing engineering and maintenance services for complex energy/chemicals works, existing client relationships, and management's stated focus on expanding the company's transition footprint. We expect the energy transition segment to gain increased investor attention as Covid-19 related impacts fade and the company continues to highlight the strong growth potential of the business via increased disclosure. We expect WOR's ST/MT margins to improve with an incrementally positive operating environment. Vs the S&P/ASX 200, WOR is trading broadly in line with market vs a premium in the last 3yr/5yr.
Goldman is forecasting dividends per share of 52 cents in FY 2024 and then 58 cents in FY 2025. Based on its current share price of $14.73, this equates to dividend yields of 3.5% and 3.9%, respectively.
