One leading broker has a couple of dividend ideas for Australian investors…
The post 2 ASX dividend shares this broker likes appeared first on The Motley Fool Australia. –
The Australian share market is home to a large number of companies sharing their profits with shareholders in the form of dividends. This certainly is a blessing given how low interest rates have fallen.
Two ASX dividend shares that offer attractive yields are listed below. Here’s why this broker likes them:
Jumbo Interactive (ASX: JIN)
The first ASX dividend share to look at is Jumbo Interactive. It is the online lottery ticket seller behind the Oz Lotteries website and mobile app.
But there’s more to the company than that. Jumbo also has a software as a service (SaaS) business called Powered by Jumbo. This platform lets lottery operators take their offering online with great ease and without the hassle of having to invest in a development team or build a website/app.
According to the company, it estimates that there is a US$300 billion global total addressable market for the Jumbo business. In light of this and its high quality technology, this side of the business looks set to its growth engine over the next decade. This bodes well for future earnings and dividend growth.
For now, analysts at Morgan Stanley expect Jumbo to pay shareholders fully franked dividends of 38.3 cents per share in FY 2021 and then 49 cents per share in FY 2022. Based on the latest Jumbo share price, this will mean yields of 2.6% and 3.4%, respectively.
Morgan Stanley has an overweight rating and $15.20 price target on its shares.
Stockland Corporation Ltd (ASX: SGP)
Another ASX dividend share to look at is Stockland. This property company owns, manages and develops a diverse range of property assets including retirement villages, retail centres, business parks, offices, and logistics centres.
Since 1952, the company has been leveraging its diversified model to help create thriving communities with dynamic town centres where people live, shop, and work. This has been a successful strategy, leading to Stockland becoming one of the largest property owners, developers and managers in Australia.
And although the Stockland share price is up 12% in 2021, it may not be too late to invest if you’re looking for a generous yield.
According to another note out of Morgan Stanley, its analysts are forecasting distributions of 25.1 cents per share in FY 2021 and then 27.8 cents per share in FY 2022. Based on the current Stockland share price, this will mean yields of 5.2% and 5.8%, respectively.
Morgan Stanley has an overweight rating and $5.00 price target on its shares.
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Returns As of 15th February 2021
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James Mickleboro does not own any shares mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Jumbo Interactive Limited. The Motley Fool Australia owns shares of and has recommended Jumbo Interactive Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.