Are you building an income portfolio? If you are, you might want to take a look at these highly rated ASX dividend shares.
Here's what you need to know about them:
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Australia and New Zealand Banking GrpLtd (ASX: ANZ)
The big four banks have seen their shares shoot higher this year. The ANZ share price, for example, is up 26% since the start of the year.
The good news is that it doesn't appear to be too late to invest for both capital returns and dividends.
According to a recent note out of Morgans, its analysts have retained their add rating and lifted their price target on its shares to $33.50.
The broker is also forecasting fully franked dividends of $1.54 per share in FY 2021 and $1.75 per share in FY 2022. Based on the current ANZ share price, this will mean yields of 5.3% and 6%, respectively, over the next couple of years.
Morgans believes the outlook for the banks is becoming increasingly positive thanks to home loan growth, favourable credit spread movements, and lower than expected impairments.
Transurban Group (ASX: TCL)
Another ASX dividend share to look at this toll road operator.
Transurban owns a collection of important roads in Australia and North America such as CityLink in Melbourne and the Cross City Tunnel and Eastern Distributor in Sydney.
While COVID-19 has led to a notable decline in traffic on its roads, volumes are recovering and are expected to continue doing so in the near term. Particularly given the significant time-savings these roads have.
Ord Minnett is positive on the company and recently retained its buy rating and $16.00 price target on its shares.
Its analysts are forecasting dividends of 37 cents per share in FY 2021 and 58 cents per share in FY 2022. Based on the latest Transurban share price, this equates to yields of 2.7% and 4.2%, respectively, over the next two years.
