Income investors may want to look at Australia and New Zealand Banking GrpLtd (ASX:ANZ) and this ASX dividend share next week…
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Are you building an income portfolio? If you are, you might want to take a look at these highly rated ASX dividend shares.
Here’s what you need to know about them:
Australia and New Zealand Banking GrpLtd (ASX: ANZ)
The ANZ share price has been a very strong performer in 2021. This has been driven by a significant improvement in its performance.
For example, last week the bank released its half year results and revealed a statutory profit after tax of $2,943 million. This was a 45% increase on the second half of FY 2020.
The good news is that it doesn’t appear to be too late to invest for both capital returns and dividends.
According to a note out of Morgans from last week, its analysts have retained their add rating and lifted their price target on its shares to $33.50.
The broker is also forecasting fully franked dividends of $1.45 and $1.63 per share over the next two years. Based on the current ANZ share price of $27.75, this will mean yields of 5.2% and 5.9%, respectively.
Wesfarmers Ltd (ASX: WES)
Another ASX dividend share to consider is Wesfarmers. This leading conglomerate has been growing at a solid rate for many years and has been tipped to continue doing so over the next decade.
This is thanks to the quality and growth potential of its portfolio of leading retail brands. These include the likes of Bunnings, Catch, and Kmart. In addition, supporting its growth will be its industrial businesses and its investments in the lithium space.
Another big positive not to be overlooked is the company’s balance sheet. This provides Wesfarmers with significant firepower for potential earnings accretive acquisitions.
Last month Goldman Sachs retained its buy rating and $59.70 price target on the company’s shares.
The broker also reaffirmed its expectation for fully franked dividends of $1.83 per share and $1.94 per share in FY 2021 and FY 2022. Based on the current Wesfarmers share price of $54.26, this will mean yields of 3.4% and 3.6%, respectively.
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Returns As of 15th February 2021
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.