These yields are very attractive in this low interest rate environment…
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Are you wanting some dividend shares to boost your income portfolio? If you are, then you may want to look at the ones listed below.
Here’s why these ASX dividend shares have been named as buys:
Aurizon Holdings Ltd (ASX: AZJ)
The first ASX dividend share to look at is Aurizon. It is Australia’s largest rail freight operator, transporting more than 250 million tonnes of Australian commodities each year.
Given how reliant the Australian economy is on commodity exports, Aurizon’s network is hugely important and has strong (but regulated) pricing power.
It recently released its full year results and reported a 1% decline in revenue to $3.019 billion and a flat net profit after tax of $531 million.
While not the strongest result we’ve seen this month, it was in line with expectations.
In light of this, the team at Credit Suisse remain positive on the company. The broker has an outperform rating and $5.30 price target on its shares.
Credit Suisse is also expecting very generous dividends in the near term. It is forecasting dividends per share of 29.5 cents in FY 2022 and then 30.9 cents in FY 2023. Based on the latest Aurizon share price of $3.87, this will mean yields of 7.6% and 8%, respectively.
Another ASX dividend share to look at is Scentre. It owns and operates a portfolio of retail real estate assets valued at $50 billion and shopping centre ownership interests valued at $34.1 billion. This comprises 42 Westfield living centres.
After a tough period, things are starting to look a lot more positive, save for current lockdowns. This is due to very favourable Australian inflation expectations.
Goldman Sachs sees this as a big positive for Scentre due to it being far more positively leveraged to inflation than any other Australian real estate investment trust under coverage. In fact, Goldman estimates that 70%+ of its base rental income is subject to inflation-linked escalation.
The broker has a buy rating and $3.29 price target on the company’s shares. Furthermore, based on the latest Scentre share price of $2.55, Goldman is forecasting generous dividend yields of 5%+ over the next couple of years.
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Returns As of 16th August 2021
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Aurizon Holdings Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.