These dividends could be top options for income investors…
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If you’re looking to bolster your portfolio with some dividend shares, then you might want to take a look at the ones listed below.
Here’s why these dividend shares are highly rated:
National Australia Bank Ltd (ASX: NAB)
The first ASX dividend share to look at is this banking giant. Although the NAB share price has been on fire this year, it may not be too late for income investors to jump in. That’s the view of analysts at Goldman Sachs, who have a buy rating and $29.97 price target on the company’s shares.
NAB remains Goldman’s preferred sector exposure. This is due to the bank’s cost management initiatives, its position as the largest business bank, and its strong capital position.
Goldman is also forecasting some attractive dividends from the bank in the near future. The broker is expecting NAB to pay fully franked dividends of 124 cents per share in FY 2021 and then 133 cents per share in FY 2022.
Based on the current NAB share price of $26.87, this will mean yields of 4.6% and 4.95%, respectively.
Scentre Group (ASX: SCG)
Another dividend share that Goldman Sachs is positive on is Scentre. The broker is particularly positive on Scentre due to Australian inflation expectations.
Goldman notes that expectations are currently at their highest level since 2015, which is good news for Scentre. This is due to the company being far more positively leveraged to inflation than any other Australian real estate investment trust under its coverage.
The broker estimates that 70%+ of its base rental income is subject to inflation-linked escalation. Goldman also notes that higher inflation aids the profitability of its retailer tenancy base, which benefits from fixed cost leverage.
Its analysts are forecasting dividends of 14 cents per share in FY 2021 and then 17 cents per share in FY 2022. Which, based on the latest Scentre share price of $2.86, will mean yields of 4.9% and 5.9%, respectively.
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Returns As of 15th February 2021
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James Mickleboro does not own any shares 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.