2 buy-rated ASX dividend shares for income investors to snap up

Telstra Corporation Ltd (ASX:TLS) and this ASX dividend share come highly rated. Here’s what you need to know…
The post 2 buy-rated ASX dividend shares for income investors to snap up appeared first on The Motley Fool Australia. –

dividend shares

Thankfully in this ultra-low interest rate environment, the Australian share market is home to a large number of dividend shares for investors to choose from.

Two ASX dividend shares that could be great options for income investors are listed below. Here’s why they come highly rated:

Fortescue Metals Group Limited (ASX: FMG)

Fortescue is one of the world’s leading iron ore producers and appears well-placed to deliver another robust result in FY 2021. This is thanks to its record shipments, ultra-low C1 production costs of US$12.74 per wet metric tonne, and the sky high iron ore price.

In respect to the latter, the iron ore price has been tipped to climb beyond US$180 a tonne next month. This is being driven by strong demand in China and production disruption in Brazil.

Analysts at Macquarie are expecting this to lead to Fortescue paying a very generous dividend in FY 2021. The broker has pencilled in a dividend of approximately $2.61 per share fully franked. Based on the current Fortescue share price, this equates to a massive 11% dividend yield.

Telstra Corporation Ltd (ASX: TLS)

Another dividend share to look at is Telstra. With the end of the NBN rollout is sight, the arrival of 5G internet, cost cutting, and its T22 strategy, Telstra’s outlook is arguably the most positive it has been in a decade.

In addition to this, the company is aiming to unlock value for shareholders by splitting its business into three separate entities. Management believes the restructure would enable the company to take advantage of potential monetisation opportunities.

Goldman Sachs thinks Telstra would be a good option for income investors. It recently reiterated its buy rating and $3.60 price target on its shares. It has also reaffirmed its forecast for a 16 cents per share fully franked dividend in FY 2021 and beyond. Based on the current Telstra share price, this would provide investors with a 5.3% dividend yield.

These Dividend Stocks Could Be Your Next Cash Kings (FREE REPORT)

Motley Fool Australia’s Dividend experts recently released a brand-new FREE report revealing 3 dividend stocks with JUICY franked dividends that could keep paying you meaty dividends for years to come.

Our team of investors think these 3 dividend stocks should be a ‘must consider’ for any savvy dividend investor. But more importantly, could potentially make Australian investors a heap of passive income.

Don’t miss out! Simply click the link below to grab your free copy and discover these 3 high conviction stocks now.

Click Here For Your Free Stock Report

Returns As of 6th October 2020

More reading

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!