Analysts rate these dividend shares highly…
The post 2 high quality ASX dividend shares named as buys appeared first on The Motley Fool Australia. –
Are you looking for some top ASX dividend shares to add to your income portfolio this week?
If you are, you might want to look at the ones listed below. Here’s what you need to know about these highly rated dividend shares:
National Australia Bank Ltd (ASX: NAB)
The first ASX dividend share to look at is this banking giant.
NAB recently released its third quarter update and revealed an unaudited statutory net profit of $1.65 billion and unaudited cash earnings of $1.70 billion. This was broadly in line with the quarterly average it achieved during the first half and was ahead of expectations.
This went down well with analysts at Goldman Sachs. In response, the broker retained its conviction buy rating and lifted its price target to $30.62. This compares favourably to the latest NAB share price of $27.45.
Goldman likes NAB due to its cost management initiatives, its position as the largest business bank, its investment in mortgage capability, and its effective management between volumes and margins.
The broker also estimates that its shares offer investors attractive fully franked yields of ~4.5% in FY 2021 and ~5% in FY 2022.
Sonic Healthcare Limited (ASX: SHL)
Another ASX dividend share to look at is Sonic Healthcare. It is a leading medical diagnostics company with operations across the world.
Sonic has been one of the real highlights of the ASX over the last 12 months. Thank to positive performances across its businesses and exceptionally strong demand for COVID-19 testing services, it has delivered stellar revenue and earnings growth.
For example, during the first half, Sonic reported a 33% increase in half year revenue to $4.4 billion and a 166% jump in first half net profit to $678 million. Positively, more of the same is expected in the second half and FY 2022. Particularly given how more transmissible COVID variants are spreading widely and causing an uptick in testing and infections.
Credit Suisse is positive on the company and has an outperform rating and $43.50 price target. It is also forecasting dividends per share of 99 cents in FY 2021 and 102 cents in FY 2022. Based on the latest Sonic share price of $41.82, this will mean partially franked yields of 2.3% and 2.4%, respectively.
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Returns As of 16th August 2021
The NAB (ASX:NAB) share price is up 7% in just two weeks
ASX 200 Weekly Wrap: New records just keep coming for the ASX 200
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 recommended Sonic Healthcare Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.