Should you buy ANZ (ASX:ANZ) and Sydney Airport (ASX:SYD) for their dividends?

Looking for attractive yields? Look no further…
The post Should you buy ANZ (ASX:ANZ) and Sydney Airport (ASX:SYD) for their dividends? appeared first on The Motley Fool Australia. –

Earlier this week the Reserve Bank of Australia elected to keep rates on hold again. Unfortunately for income investors, this looks likely to remain the case for some time to come.

The good news is that there are a large number of dividend shares with attractive yields ready to save the day. Two such examples are listed below:

Australia and New Zealand Banking GrpLtd (ASX: ANZ)

If you don’t already have exposure to the banking sector, then it could be worth considering ANZ. Especially given its improving outlook and the prospect of dividend increases in the coming years.

One broker that is particularly positive on ANZ is Morgans. The broker recently retained its add rating and lifted its price target on the bank’s shares to $33.50. This compares to the latest ANZ share price of $29.20.

In addition to this, the broker is forecasting fully franked dividends of $1.45 and $1.63 per share over the next two financial years. Based on the current ANZ share price, this will mean yields of 5% and 5.6%, respectively.

Sydney Airport Holdings Pty Ltd (ASX: SYD)

Another ASX dividend share to look at is Sydney Airport. While trading conditions are tough for the airport operator right now, it looks well-placed to rebound once travel markets return to normal.

Goldman Sachs expects this to be the case. The broker recently retained its buy rating and $6.73 price target on its shares.

And while Goldman isn’t expecting much by way of dividends in FY 2021, it appears confident that things will normalise next year. The broker is forecasting dividends of 8.8 cents per share in FY 2021 and then 27.1 cents per share in FY 2022.

Based on the current Sydney Airport share price of $6.12, this will mean yields of 1.4% and 4.6%, respectively.

The post Should you buy ANZ (ASX:ANZ) and Sydney Airport (ASX:SYD) for their dividends? appeared first on The Motley Fool Australia.

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!