2 ASX dividend shares this broker likes

One leading broker has a couple of dividend ideas for Australian investors…

| More on:
A man with a yellow background makes an annoncement, indicating share price changes on the ASX

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Australian share market is home to a large number of companies sharing their profits with shareholders in the form of dividends. This certainly is a blessing given how low interest rates have fallen.

Two ASX dividend shares that offer attractive yields are listed below. Here's why this broker likes them:

Jumbo Interactive (ASX: JIN)

The first ASX dividend share to look at is Jumbo Interactive. It is the online lottery ticket seller behind the Oz Lotteries website and mobile app.

But there's more to the company than that. Jumbo also has a software as a service (SaaS) business called Powered by Jumbo. This platform lets lottery operators take their offering online with great ease and without the hassle of having to invest in a development team or build a website/app.

According to the company, it estimates that there is a US$300 billion global total addressable market for the Jumbo business. In light of this and its high quality technology, this side of the business looks set to its growth engine over the next decade. This bodes well for future earnings and dividend growth.

For now, analysts at Morgan Stanley expect Jumbo to pay shareholders fully franked dividends of 38.3 cents per share in FY 2021 and then 49 cents per share in FY 2022. Based on the latest Jumbo share price, this will mean yields of 2.6% and 3.4%, respectively.

Morgan Stanley has an overweight rating and $15.20 price target on its shares.

Stockland Corporation Ltd (ASX: SGP)

Another ASX dividend share to look at is Stockland. This property company owns, manages and develops a diverse range of property assets including retirement villages, retail centres, business parks, offices, and logistics centres.

Since 1952, the company has been leveraging its diversified model to help create thriving communities with dynamic town centres where people live, shop, and work. This has been a successful strategy, leading to Stockland becoming one of the largest property owners, developers and managers in Australia.

And although the Stockland share price is up 12% in 2021, it may not be too late to invest if you're looking for a generous yield.

According to another note out of Morgan Stanley, its analysts are forecasting distributions of 25.1 cents per share in FY 2021 and then 27.8 cents per share in FY 2022. Based on the current Stockland share price, this will mean yields of 5.2% and 5.8%, respectively.

Morgan Stanley has an overweight rating and $5.00 price target on its shares.

James Mickleboro does not own any shares mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended Jumbo Interactive Limited. The Motley Fool Australia owns shares of and has recommended Jumbo Interactive Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Dividend Investing

Woman on a swing at a beach, symbolising passive income.
Dividend Investing

Overinvested in Fortescue shares? Here are two alternative ASX dividend stocks

Let’s unearth some other passive income opportunities.

Read more »

A person stands still with a virtual reality technology headset on and arms outstretched, surrounded by frozen ice and snow.
Dividend Investing

I'd make my money stretch further with these 3 ASX passive income shares

I think these three ASX passive income stocks can keep delivering for years to come.

Read more »

Different Australian dollar notes in the palm of two hands, symbolising dividends.
Dividend Investing

3 high-yield ASX dividend stocks named as buys

Analysts think big returns could be on offer with these buy-rated stocks.

Read more »

Rail worker in hard hat kneels over train tracks inspecting tracks
Dividend Investing

A fund manager is backing this fallen ASX 200 dividend giant as a turnaround buy

This ASX 200 stock could be on track for a turnaround.

Read more »

A woman standing in a blue shirt smiles as she uses her mobile phone to text message someone
Dividend Investing

Why income investors should buy Telstra and this ASX 200 dividend share now

Analysts have good things to says about these two giants.

Read more »

A businessman looking at his digital tablet or strategy planning in hotel conference lobby. He is happy at achieving financial goals.
Dividend Investing

Buy BHP and these ASX income stocks in November

What are analysts saying about these income options this month?

Read more »

A man holding a cup of coffee puts his thumb up and smiles while at laptop.
Dividend Investing

2 of the best ASX 200 dividend shares to buy next week

Analysts have good things to say about these income options.

Read more »

A happy older couple relax in a hammock together as they think about enjoying life with a passive income stream.
Dividend Investing

$10,000 of Fortescue shares could net me a $1,011 yearly passive income!

There are good reasons many ASX passive income investors own Fortescue shares.

Read more »