2 buy-rated ASX dividend shares for income investors

These ASX dividend shares could be top options for income investors…
The post 2 buy-rated ASX dividend shares for income investors appeared first on The Motley Fool Australia. –

If you’re an income investor on the lookout for dividend options, then you may want to look at the two listed below.

Here’s what you need to know about them:

Australia and New Zealand Banking GrpLtd (ASX: ANZ)

The first ASX dividend share for income investors to look at is banking giant ANZ.

Thanks to its positive outlook due to improving trading conditions and cost reductions, it could be a top option for income investors. In respect to the latter, ANZ aiming to reduce its cost base materially to $8 billion in the near future.

Another positive is its strong capital position. At the end of the third quarter, ANZ’s CET1 ratio stood at 12.2%. This is significantly higher than APRA’s unquestionably strong benchmark of 10.5%, giving the bank plenty of opportunities to return funds to shareholders. For example, ANZ’s recently announced $1.5 billion share buyback is only expected to reduce its CET1 ratio by 35 basis points.

Analysts at Morgans are bullish on the bank. They currently have an add rating and $34.50 price target on ANZ’s shares.

In addition, the broker is forecasting fully franked dividends of 145 cents per share in FY 2021 and then 165 cents per share in FY 2022. Based on the latest ANZ share price of $28.32, this represents yields of 5.1% and 5.8%, respectively.

Transurban Group (ASX: TCL)

Another ASX dividend share to look at is this toll road operator.

Transurban has a world class portfolio of important toll roads throughout Australia and North America. These include the CityLink in Melbourne, Cross City Tunnel in Sydney, and the AirportlinkM7 in Brisbane.

Lockdowns have inevitably hit the company hard. But with the vaccine rollout going well, it may not be long until its roads are full of traffic again.

Ord Minnett remains very positive on the company. Its analysts currently have a buy rating and $15.50 price target on its shares.

As for dividends, the broker is forecasting dividends of 36.5 cents per share in FY 2022 and then 48.4 cents per share in FY 2023. Based on the current Transurban share price of $14.08, this will mean yields of 2.6% and 3.5%, respectively.

The post 2 buy-rated ASX dividend shares for income investors appeared first on The Motley Fool Australia.

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More reading

ANZ (ASX:ANZ) share buyback, what does it mean for you?
2 quality ASX dividend shares rated as buys this month

Is the ANZ (ASX:ANZ) share price a buy right now?
Here’s what has been moving the ANZ (ASX:ANZ) share price in August 2021
What’s moving the ASX 200 Index (ASX:XJO) on Monday?

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.

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