Here’s why these dividend shares could be in the buy zone…
The post 2 buy-rated ASX dividend shares for next week appeared first on The Motley Fool Australia. –
Are you looking for income options for your portfolio next week?
If you are, then you might want to consider the ASX shares listed below. Here’s why they could top options for investors:
Commonwealth Bank of Australia (ASX: CBA)
The first ASX dividend share to look at is this banking giant. It could be a top option for investors due to its leadership position in the banking sector and its attractive yield.
One broker that is a fan of Australia’s largest bank is Bell Potter. It likes CBA due to its strong position as the leader in home lending and retail deposits. It also highlights that the bank has a very strong balance sheet with significant surplus capital and opportunities to add value via SME banking, wealth management, and selective Asian expansion.
Bell Potter currently has a buy rating and $118.00 price target on its shares. It is also forecasting fully franked dividends per share of $4.06 in FY 2022 and $4.27 in FY 2023. Based on the current CBA share price of $104.68, this will mean yields of 3.9% and 4.2%, respectively.
Healius Ltd (ASX: HLS)
Another ASX dividend share to look at is Healius. It is a healthcare company with a focus on pathology, diagnostic imaging, day hospitals, and IVF.
Healius has been a very strong performer over the last 18 months thanks largely to its pathology business, which is experiencing significant demand for COVID-19 testing services.
For example, during the first quarter of FY 2022, Healius was averaging 40,000 COVID tests per working day. This underpinned a 43.7% increase in revenue over the prior corresponding period to $689.9 million.
The team at Macquarie were impressed. In response, the broker retained its outperform rating and lifted its price target to $5.65.
Macquarie is also forecasting fully franked dividends per share of 23.7 cents in FY 2022 and 14.5 cents in FY 2023. Based on the current Healius share price of $4.82, this will mean yields of 4.9% and 3%, respectively.
Should you invest $1,000 in CBA right now?
Before you consider CBA, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and CBA wasn’t one of them.
The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of August 16th 2021
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.