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2 buy-rated ASX dividend shares with 5% yields

These dividend shares are expected to offer 5% yields in FY 2022…
The post 2 buy-rated ASX dividend shares with 5% yields appeared first on The Motley Fool Australia. –

Are you looking for some dividend shares to boost your income portfolio? If you are, then you might want to look at the ones listed below.

Here’s why these ASX dividend shares could be in the buy zone:

Scentre Group (ASX: SCG)

The first ASX dividend share to look at is this shopping centre operator.

Scentre owns and operates the pre-eminent living centre portfolio in the ANZ market with $50 billion of retail real estate assets under management. This comprises 42 Westfield living centres.

It certainly has been a tough 18 months for Scentre because of the pandemic. However, with Australia on the verge of reopening again, foot traffic through its centres looks set to rebound.

In addition, with inflation expectations at high levels, Scentre looks well-placed to benefit. This is because the company is positively leveraged to inflation with an estimated 70%+ of its base rental income subject to inflation-linked escalation.

It is largely for this reason that Goldman Sachs is so positive on Scentre. It currently has a buy rating and $3.32 price target on its shares.

As for dividends, the broker is forecasting a 16 cents per share dividend in FY 2022. Based on the latest Scentre share price of $2.99, this will mean a 5.3% yield.

Westpac Banking Corp (ASX: WBC)

Goldman Sachs is also positive on Australia’s oldest bank. It likes Westpac due to its belief that the earnings risks are skewed to the upside thanks to its bold cost reduction plans. It notes that management is aiming to reduce its cost base down to $8 billion by FY 2024.

Although Westpac’s shares have stormed higher this year, the broker believes they can still go higher. It has a buy rating and $29.83 price target on its shares.

In addition, its analysts believe the bank’s shares will provide investors with a generous yield in FY 2022. Goldman has pencilled in a fully franked $1.28 per share dividend. Based on the current Westpac share price of $25.65, this will mean a 5% yield for investors.

The post 2 buy-rated ASX dividend shares with 5% yields appeared first on The Motley Fool Australia.

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More reading

ASX 200 bank shares fall flat amid flurry of new regulations

Own Westpac (ASX: WBC) shares? Here’s why the bank is making news
Why the ANZ (ASX:ANZ) share price has lagged the ASX 200
How does the Westpac (ASX:WBC) dividend compare to the banking sector?
These were the best performing ASX bank shares in September

Motley Fool contributor James Mickleboro owns shares of Westpac Banking Corporation. 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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