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2 ASX dividend shares rated as strong buys by brokers

The ASX dividend shares in this article have been rated as strong buys by brokers. One of those income picks is Bapcor Ltd (ASX:BAP).
The post 2 ASX dividend shares rated as strong buys by brokers appeared first on The Motley Fool Australia. –

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There are some ASX dividend shares that a number of brokers like and have rated as ‘buys’

It can be quite hard to find good businesses that are trading at a good price. One investor might say that BHP Group Ltd (ASX: BHP) is a good buy, whilst another might say that Woolworths Group Ltd (ASX: WOW) is the share to buy.

Brokers are constantly looking at businesses and share prices, thinking about what would be a good investment. There are various brokers out there like Bell Potter, Macquarie Group Ltd (ASX: MQG) and UBS that provide different recommendations about shares.  

With that in mind, these ASX dividend shares are liked by more than one broker. Of course, this still isn’t a guarantee of success – they could all be herding together.

Bapcor Ltd (ASX: BAP)

Bapcor is an auto parts ASX share that is liked by at least six brokers at the moment.

At the current Bapcor share price, it has a trailing grossed-up dividend yield of 3.3%.

The company recently updated the market to say that performance is going better than previously expected. It said that its businesses, such as Burson and Autobarn, have continued to perform strongly since the previous update.

For the five months to the end of November revenue was up 26%. Net profit after tax (NPAT) is benefiting from lower expenses in areas such as travel and other areas of discretionary expenditure.

For the first half of FY21, Bapcor anticipates it will achieve revenue growth of at least 25% compared to the first half of FY20. Net profit is expected to increase by at least 50%. This growth may help the Bapcor dividend rise in FY21.  

The ASX dividend share said that initiatives that have helped the business include a recently-launched new Autobarn store format that is delivering a significant uplift in sales. It has also done things like improved its online capabilities, revitalised its catalogues, expanded product ranges and added to its product ranges, whilst growing its footprint expansion.

The company said that the construction of the new Victorian distribution centre is progressing well with the building expected to be handed over in February 2021, with the automated picking system operational in the following six months. Management expect this will lead to significant operational benefits.

Charter Hall Long WALE REIT (ASX: CLW)

Charter Hall Long WALE REIT is a way for investors to invest in commercial property across Australia. It’s liked by at least three brokers at the moment. 

It has a diversified property portfolio with various tenants including telecommunications, government, grocery and distribution, convenience retail (service stations), pubs and bottle shops, food manufacturing, waste and recycling, and ‘other’ such as Bunnings.

The REIT has plenty of listed businesses as tenants including Telstra Corporation Ltd (ASX: TLS), BP, Woolworths, Inghams Group Ltd (ASX: ING), Coles Group Ltd (ASX: COL), Metcash Limited (ASX: MTS), Westpac Banking Corp (ASX: WBC) and Wesfarmers Ltd (ASX: WES).

This ASX dividend share has one of the longest weighted average lease expiry (WALE) statistics in the REIT industry of 14.2 years.

Its occupancy rate is currently above 97% and the REIT is steadily making more high-quality acquisitions, such as the recent BP portfolio purchase.

Charter Hall Long WALE REIT recently reaffirmed guidance that FY21 operating earnings per share (EPS) will be at least 29.1 cents per share, which reflects a forward distribution yield of 6.3% assuming a distribution payout ratio of 100%.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Bapcor, Macquarie Group Limited, and Telstra Limited. The Motley Fool Australia owns shares of COLESGROUP DEF SET, Wesfarmers Limited, and Woolworths Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post 2 ASX dividend shares rated as strong buys by brokers appeared first on The Motley Fool Australia.

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