This leading broker has named a couple of dividend shares that could be worth looking closely at…
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If you’re on the lookout for some dividend shares, then you might want to consider the ones listed below.
Here’s what you need to need to know about them:
National Storage REIT (ASX: NSR)
National Storage is one of the ANZ region’s largest self-storage operators. It currently tailors self-storage solutions to residential and commercial customers from its network of over 200 centres.
But it may not stop there. Earlier this week the company launched a $325 million capital raising. The proceeds will be used to strengthen its balance sheet, replenish its investment capacity, and provide additional funding flexibility going forward. The company made the move after completing acquisitions totalling $373 million to date in FY 2021.
As well as announcing the capital raising, the company upgraded its FY 2021 earnings guidance from between 7.7 cents and 8.3 cents per share to between 8.5 cents and 8.6 cents per share. From this, it plans to 90% to 100% out to shareholders as distributions.
Based on the middle of both ranges, this will mean a distribution of 8.12 cents per share. This equates to a yield of just under 4%.
On Wednesday, Ord Minnett upgraded the company’s shares to an accumulate rating with a $2.20 price target.
Transurban Group (ASX: TCL)
Transurban is one of the world’s leading toll road operators. It owns a number of key roads across Australia and North America.
While traffic volumes have been down because of the pandemic, they have been improving. This bodes well for its distributions in the coming years after a recent period of lower than normal payouts due to COVID-19.
Ord Minnett expects the company’s distribution to rebound strongly in FY 2022. It is forecasting dividends of 37 cents per share in FY 2021 and then 58 cents per share in FY 2022.
Based on the latest Transurban share price of $14.45, this will mean forward yields of 2.55% and 4.05%, respectively. Ord Minnett has a buy rating and $16.00 price target on the company’s shares.
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Returns As of 15th February 2021
National Storage (ASX:NSR) share price returns on equity raising efforts
Why the National Storage (ASX:NSR) share price is frozen
2 highly rated ASX dividend shares with attractive yields
James Mickleboro does not own any shares 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 owns shares of and has recommended Transurban Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.