Analysts say these ASX dividend shares with big yields are buys

Here are two buy-rated dividend shares…
The post Analysts say these ASX dividend shares with big yields are buys appeared first on The Motley Fool Australia. –

If you’re building an income portfolio, then you might want to look at the shares listed below.

Both ASX dividend shares have big yields and have been named as buys by analysts. Here’s what you need to know about them:

Super Retail Group Ltd (ASX: SUL)

The first ASX dividend share for income investors to look at is Super Retail. It is the retail conglomerate behind the BCF, Macpac, Rebel, and Super Cheap Auto brands.

These brands have been performing very positively during the pandemic, leading to stellar sales and profit growth. For example, in FY 2021, Super Retail reported a 22% increase in sales to $3.45 billion and a 107% jump in normalised net profit after tax to $306.8 million.

And while trading conditions have been tough this financial year because of lockdowns, Super Retail is still being tipped to provide investors with a generous dividend payment.

According to a recent note out of Citi, its analysts have a buy rating and $16.00 price target on the company’s shares. The broker is also forecasting fully franked dividends per share of 67 cents in FY 2022 and then 64.5 cents in FY 2023.

Based on the current Super Retail share price of $13.41, this will mean yields of 5% and 4.8%, respectively.

Westpac Banking Corp (ASX: WBC)

Another ASX dividend share to consider is Westpac. Australia’s oldest bank has returned to form this year after rebounding strongly from the pandemic.

For example, at the start of the month, Westpac reported a 138% increase in full year statutory net profit to $5,458 million and a 105% jump in cash earnings to $5,352 million. This allowed Westpac to declare a fully franked final dividend of 60 cents per share and announce a $3.5 billion off-market share buyback.

And while its margin outlook disappointed the market, the severe selloff that ensued could have created a buying opportunity for investors. That appears to be the view of Morgans, which has just retained its add rating and lifted its price target to $30.50.

The broker is also forecasting generous yields in the near future. Morgans has pencilled in fully franked dividends of $1.23 per share in FY 2022 and then $1.62 per share in FY 2023. Based on the current Westpac share price of $22.83, this will mean yields of 5.4% and 7.1%, respectively.

The post Analysts say these ASX dividend shares with big yields are buys appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

More reading

Westpac (ASX:WBC) just sealed a record bond deal. What could this mean for shareholders?

Morgans just bumped up its target for the Westpac (ASX:WBC) share price. Here’s why

How does the CBA share price performance stack up against the other big banks?

2 buy-rated ASX dividend shares with big yields

Why is the Westpac (ASX:WBC) share price outperforming on Monday?

Motley Fool contributor James Mickleboro owns shares of Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Super Retail Group Limited. The Motley Fool Australia owns shares of and has recommended Super Retail Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!