Analysts rate these dividend shares highly…
The post 2 ASX dividend shares that analysts love appeared first on The Motley Fool Australia. –
If you’re looking to boost your income with some dividend shares, then you might want to consider the ones listed below.
Here’s why analysts have given them buy ratings:
Aurizon Holdings Ltd (ASX: AZJ)
The first ASX dividend share to look at is Aurizon. It is Australia’s largest rail freight operator, connecting miners, primary producers, and industry with international and domestic markets. It provides its customers with integrated freight and logistics solutions across an extensive national rail and road network, traversing Australia.
One broker that is positive on the company is Macquarie. It also believes the company has almost $1 billion of balance sheet capacity to drive its growth through acquisitions.
Macquarie currently has an outperform rating and $4.32 price target on its shares and is forecasting generous dividends in the coming years.
Macquarie expects partially franked dividends of 27.8 cents per share in FY 2021 and then 28.6 cents per share in FY 2022. Based on the latest Aurizon share price of $3.89, this will mean yields of 7.15% and 7.35%, respectively.
Transurban Group (ASX: TCL)
Another ASX dividend share to consider is Transurban. This leading toll road operator has a portfolio of important roads in Melbourne, Sydney and Brisbane, Greater Washington, United States and Montreal, Canada.
Although its recovery from the pandemic has been hit by recent lockdowns, it has been tipped to bounce back strongly once restrictions are eased again.
Analysts at Ord Minnett remain very positive on the company and have a buy rating and $16.00 price target on its shares. While the broker expects the recent lockdowns to weigh on its performance in the first quarter of FY 2022, it expects traffic volumes to rebound thereafter. Longer term, the broker believes Transurban is well-placed for the next phase of its growth thanks to a significant pipeline of opportunities.
For now, Ord Minnett is forecasting dividends of 36.5 cents per share in FY 2021 and then 57.7 cents per share in FY 2022. Based on the latest Transurban share price of $14.14, this will mean yields of 2.6% and 4.1%.
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Returns As of 15th February 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.