Are you looking for some excellent ASX dividend shares to add to your income portfolio? Then you might want to…
The post 2 quality ASX dividend shares rated as buys appeared first on The Motley Fool Australia. –
Are you looking for some excellent ASX dividend shares to add to your income portfolio?
Then you might want to take a look at the ones listed below. Here’s what you need to know about these dividend shares:
The first ASX dividend share to look at is Aventus. It is a fully integrated owner, manager, and developer of large format retail centres in Australia.
At the last count, Aventus had a portfolio of 20 centres valued at $2.2 billion and spanning 536,000m2 in gross leasable area. It has a diverse tenant base of 593 quality tenancies, with national retailers representing 87% of the total portfolio.
Demand for tenancies has remained strong during the pandemic, underpinning strong rental collections. This led to a 6.5% increase in funds from operations (FFO) to $55.9 million during the first half. Positively, more of the same is expected in the second half.
Morgans currently has an add rating and $3.12 price target on its shares. The broker is also forecasting a 17.4 cents per share distribution in FY 2021 and then a 17.7 cents per share distribution in FY 2022. Based on the latest Aventus share price, this represents 5.7% and 5.8% dividend yields, respectively.
National Australia Bank Ltd (ASX: NAB)
Another ASX dividend share to consider is this banking giant. It could be a good option due to its positive outlook thanks to Australia’s strong economic recovery and the booming housing market.
In addition, although its shares have been strong performers in 2021, they have been tipped to climb even higher. According to a note out of Goldman Sachs this week, its analysts have retained their conviction buy rating and $29.97 price target on the bank’s shares.
Goldman is also forecasting fully franked dividends of 124 cents per share in FY 2021 and 133 cents per share in FY 2022. Based on the current NAB share price of $26.77, this will mean yields of 4.6% and 5%.
NAB remains Goldman’s preferred sector exposure. This is due to the bank’s cost management initiatives, its position as the largest business bank, and its strong capital position.
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Returns As of 15th February 2021
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James Mickleboro does not own any shares 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 AVENTUS RE UNIT. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.