Check out these dividend shares that are tipped as buys…
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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:
National Storage REIT (ASX: NSR)
The first ASX dividend share to look at is National Storage. It is one of the largest self-storage operators in the ANZ region with a network of over 200 centres.
Though, it looks unlikely to stop at that number. National Storage recently raised $326 million to strengthen its balance sheet and replenish its investment capacity. This could mean further earnings accretive acquisitions in the highly fragmented market in the future.
Combined with favourable trading conditions being driven by the booming housing market, this bodes well for the coming years.
Analysts at Ord Minnett currently have an accumulate rating and $2.20 price target on the company’s shares. Its analysts are also forecasting dividends of 8.2 cents per share in FY 2021 and then 8.6 cents per share in FY 2022. Based on the latest National Storage share price of $2.10, this will mean yields of 3.7% and 4.1%, respectively.
Transurban Group (ASX: TCL)
Another ASX dividend share to consider is Transurban. It is one of the world’s leading toll road operators with key roads in Melbourne, Sydney and Brisbane, as well as in Greater Washington, United States and Montreal, Canada.
In addition to being a toll road company, Transurban considers itself to be a technology company. It notes that it researches and develops innovative tolling and transport technology that makes travel easier for everyone.
Recent lockdowns have certainly been a blow to the company. However, as has been proven previously during the pandemic, traffic bounces back reasonably quickly once restrictions ease. And with the Australian vaccine rollout starting to gather momentum, it may not be too long until lockdowns are a thing of the past and its roads are busy with traffic again.
This could make it worth being patient with Transurban’s shares. Especially given the prospect of big dividend increases in the future.
Macquarie is confident in the company’s recovery and is expecting its distributions to rebound strongly in FY 2022. The broker is forecasting dividends of 36 cents per share in FY 2021 and then 59.1 cents per share in FY 2022. Based on the latest Transurban share price of $14.76, this will mean yields of 2.4% and 4%, respectively, over the next two years. Macquarie currently has an outperform rating and $15.20 price target on the company’s shares.
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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’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.