Check out these buy-rated dividend shares…
The post 2 buy-rated ASX dividend shares with generous yields appeared first on The Motley Fool Australia. –
Fortunately, in this low interest rate environment, there are plenty of shares offering investors attractive dividend yields.
Two dividend shares that are currently rated as buys are listed below. Here’s why they could be buys next week:
Centuria Industrial Reit (ASX: CIP)
The first ASX dividend share to look at is Centuria Industrial. It is focused on building a portfolio of high quality industrial assets to deliver income and capital growth to investors. At present, its portfolio is well positioned with an 89% weighing to Australia’s high performing eastern seaboard industrial markets.
The majority of its tenant base is linked to the production, packaging and distribution of consumer staples, telecommunications and pharmaceuticals. It has also just announced the acquisition of eight freehold urban infill industrial assets for a total of $351.3 million. Management notes that this expands the company’s exposure across key industrial sub-sectors. These include distribution centres, cold storage, and transport logistics.
The team at Macquarie are bullish on the company. Last week the broker retained its outperform rating and lifted its price target to $4.22. It is also forecasting a 17.3 cents per share distribution in FY 2022. Based on the latest Centuria Industrial share price of $3.77, this equates to a 4.6% yield.
If you don’t already have exposure to the banking sector, then Westpac could be a dividend share to buy. This is due to improving trading conditions, its strong balance sheet, and its bold cost reduction targets.
It is partly due to the latter that analysts at Citi are very positive on the bank. They note that Westpac is aiming to reduce its cost base to $8 billion in the coming years. This compares to its $12.7 billion cost base at present.
In addition, the broker believes its shares are trading at an attractive level for investors. So much so, Citi has a buy rating and $30.00 price target on its shares. This compares to the latest Westpac share price of $25.25.
Citi is forecasting fully franked dividends of $1.16 per share in FY 2021 and then $1.30 per share in FY 2022. This represents yields of 4.6% and 5.1%, respectively, over the next couple of years.
The post 2 buy-rated ASX dividend shares with generous yields appeared first on The Motley Fool Australia.
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Motley Fool contributor James Mickleboro owns shares of Westpac Banking Corporation. 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.