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

An older executive man dressed in suit trousers and a white shirt sits against a wall smiling with cash rains down over him representing dividend shares like BHP, FMG and Newcrest paying dividends in retirement
How to invest

How you can earn $10,000 a year in passive income from a $10k ASX 200 investment today!

Looking to boost your retirement with an extra $10,000 a year in passive income. Read on...

Read more »

A smiling woman holds a Facebook like sign above her head.
Dividend Investing

Bell Potter names the best ASX dividend shares to buy in June

Bell Potter thinks these are among the best shares for income investors to buy right now.

Read more »

a man leans back in his chair with his arms supporting his head as he smiles a satisfied smile while sitting at his desk with his laptop computer open in front of him.
Dividend Investing

With a 5% dividend yield, why I think this leading ASX share is a buy

I think this business offers pleasing income with potential capital gains too.

Read more »

Middle age caucasian man smiling confident drinking coffee at home.
Dividend Investing

3 top ASX dividend shares for income investors to buy

Analysts have good things to say about these income options.

Read more »

Woman smiling whilst shopping in a clothing store.
Dividend Investing

Why this quality ASX 300 dividend stock is tipped to surge 54%

A leading fund manager forecasts significant outperformance from this quality ASX 300 dividend stock.

Read more »

Man smiling at a laptop because of a rising share price.
Dividend Investing

Why this is one of my top ASX dividend shares to buy in June

This ASX dividend share provides everything I’m looking for.

Read more »

A happy young couple lie on a wooden deck using a skateboard for a pillow.
Dividend Investing

Forget Westpac and buy these ASX dividend shares

Let's see what analysts are saying about these income options.

Read more »

Two smiling work colleagues discuss an investment or business plan at their office.
Dividend Investing

Brokers say Harvey Norman and these ASX dividend stocks are buys

Let's see what brokers are recommending as buys for income investors.

Read more »