These yields are very juicy in this low interest rate environment…
The post 2 high yield ASX dividend shares named as buys 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 high yield ASX dividend shares could be in the buy zone:
The first ASX dividend share to look at is Scentre. It owns and operates the pre-eminent living centre portfolio in the ANZ market with retail real estate assets under management valued at $50 billion and shopping centre ownership interests valued at $34.1 billion. This comprises 42 Westfield living centres.
Although times have been hard for Scentre due to COVID-19, Goldman Sachs remains positive on the company. Particularly given that Australian inflation expectations are currently at their highest level since 2015. Goldman sees this as a big positive for Scentre due to it being far more positively leveraged to inflation than any other Australian real estate investment trust under coverage. Goldman estimates that 70%+ of its base rental income is subject to inflation-linked escalation.
Its analysts have a buy rating and $3.29 price target on the company’s shares. Based on the latest Scentre share price of $2.55, Goldman is forecasting generous dividend yields of 5%+ over the next couple of years.
Suncorp Group Ltd (ASX: SUN)
Another ASX dividend share to look at is Suncorp. It is one of Australia’s leading insurance and banking companies. As well as the eponymous Suncorp brand, it also owns the AAMI, Apia, Bingle, GIO, Shannons, and Vero brands.
Suncorp was a positive performer in FY 2021 and recently released its full year results. The company delivered a 42.1% increase in cash earnings to $1,064 million for the 12 months. This allowed the insurance giant to declare a special dividend and announce a $250 million on-market share buyback.
Credit Suisse was pleased with its result and upgraded the company’s shares to an outperform rating with a $14.00 price target. The broker believes Suncorp is well-placed to continue growing its earnings and dividends in the near term.
In respect to dividends, Credit Suisse is forecasting fully franked dividends of 73 cents per share in FY 2022 and then 74 cents in FY 2023. Based on the current Suncorp share price of $12.37, this will mean 5.9% and 6% yields, respectively.
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Returns As of 16th August 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.