2 high yield ASX dividend shares named as buys

These dividend shares are expected to pay big dividends…

| More on:
Woman holding some cash

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

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:

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

Blue chip in a trolley with a man pushing it.
Dividend Investing

3 blue-chip alternatives to CBA shares for MORE passive income

These blue-chip stocks look like appealing dividend picks.

Read more »

Man holding Australian dollar notes, symbolising dividends.
Energy Shares

Dividend investors: Top ASX energy shares for November

These are the energy stocks I would buy for dividend income.

Read more »

Excited woman holding out $100 notes, symbolising dividends.
Dividend Investing

Buy these excellent ASX dividend stocks for 6% to 7% yields

Analysts at Bell Potter think these stocks could be buys for income investors.

Read more »

Hand holding Australian dollar (AUD) bills, symbolising ex dividend day. Passive income.
Dividend Investing

Analysts say these ASX dividend shares are buys this month

Here's what analysts are predicting for these income options.

Read more »

Dividend Investing

2 ASX 200 dividend stocks that could be strong buys

Bell Potter is saying good things about these buy-rated income stocks.

Read more »

a woman wearing fashionable clothes and jewellery checks her phone with a satisfied smile on her face in a luxurous home setting.
Dividend Investing

3 ASX dividend shares to buy instead of the big four banks

Analysts think these dividend shares could be top picks instead of the banks.

Read more »

A woman blows what looks like colourful dust at the camera, indicating a positive or magic situation.
Index investing

Does the Vanguard Australian Shares ETF (VAS) pay fully franked dividends?

This index fund can boost your returns with franking credits...

Read more »

A happy construction worker or miner holds a fistfull of Australian money, indicating a dividends windfall
Energy Shares

Is Woodside stock a buy for its 8% dividend yield?

Woodside's dividends look fat, but proceed with caution...

Read more »