2 high yield ASX dividend shares named as buys

These dividend shares are expected to pay big dividends…

| More on:

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

Are you looking for some quality dividend shares to buy next week? If you are, then you may want to look at the two listed below.

Here's why analysts rate these ASX dividend shares as buys:

Woman holding some cash

Image source: Getty Images

BHP Group Ltd (ASX: BHP)

The first dividend share for investors to look at is this mining giant. The BHP share price has come under significant pressure in recent months due to the well-documented collapse in iron ore prices.

However, it is worth noting that BHP is far from a one-trick pony and has exposure to a range of commodities. Some of which have risen during the last few months and are supporting strong free cash flow generation.

It is because of this that Macquarie continues to rate the Big Australian's shares as a buy. It currently has an outperform rating and $52.00 price target on its shares.

In addition, the broker is forecasting fully franked dividends of $3.76 per share in FY 2022 and $2.81 per share in FY 2023. Based on the current BHP share price of $36.45, this will mean yields of 10.3% and 7.7%, respectively.

Scentre Group (ASX: SCG)

Another ASX dividend share to look at is this shopping centre operator. It owns and operates the pre-eminent living centre portfolio in the ANZ market comprising 42 Westfield living centres.

The team at Goldman Sachs is very positive on Scentre. The broker notes that the company had a tough third quarter but has been pleased with its improving performance since the lifting of lockdowns.

The broker highlighted that "momentum picked up in the month of October as restrictions eased and we estimate SCG collected roughly over 81% billings over the month and we expect this to continue to improve as more stores reopen over the coming weeks."

Goldman has a buy rating and $3.47 price target on its shares. It also estimates that Scentre's shares will provide investors with yields of 5% in FY 2022 and 5.8% in FY 2023.

Motley Fool contributor James Mickleboro has no position in any of the stocks 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 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.

More on Dividend Investing

a man in a business suit looks at a map of the world above a line up of oil barrels with a red arrow heading upwards above them, indicting rising oil prices.
Dividend Investing

If the oil price remains above US$100, Woodside shares could be raining dividends before Christmas

Surging oil prices are no fun at the petrol station, but they could be a boon for upcoming Woodside dividends.

Read more »

A wad of $100 bills of Australian currency lies stashed in a bird's nest.
Dividend Investing

Should you buy New Hope shares for passive income today?

New Hope reported on its upcoming passive income payout this morning.

Read more »

Happy dad watching tv with kids, symbolising passive income.
Dividend Investing

3 of the best ASX income stocks to buy now

These ASX companies generate strong cash flow that supports shareholder payouts.

Read more »

Man holding fifty Australian Dollar banknote in his hands, symbolising dividends, symbolising dividends.
Dividend Investing

Forget term deposits! I'd buy these two ASX 200 shares instead

These businesses have solid dividend records and rising payouts.

Read more »

Animation of a man measuring a percentage sign, symbolising rising interest rates.
Dividend Investing

71% chance of RBA hike? These ASX dividend shares still beat rising interest rates

Big dividend yields are forecast for these dividend shares.

Read more »

Three women dance and splash about in the shallow water of a beautiful beach on a sunny day.
Share Market News

3 legendary ASX dividend shares worth a closer look

The companies all boast strong market positions and steady cash flow.

Read more »

Australian dollar notes and coins in a till.
Dividend Investing

How many Westpac shares do I need to buy for a $10,000 annual passive income?

Westpac shares have a lengthy track record of paying two fully franked dividends every year.

Read more »

Man with his arms spread wide in a field.
Dividend Investing

Why this ASX REIT is a retiree's dream

Looking for a reliable investment? I’d go for this one…

Read more »