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

A couple makes silly chip moustache faces and take a selfie on their phone.
Dividend Investing

Worried about falling interest rates? Here are 2 ASX 200 income shares to replace a term deposit today

Dividend shares are looking better and better in 2025.

Read more »

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

Guess which high-yielding ASX All Ords dividend stock Macquarie expects to surge 34% in a year

Looking for market-beating passive income and share price gains? Check out this ASX All Ords stock!

Read more »

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

Buy BHP, Telstra, and this ASX dividend share

Brokers are tipping these shares as buys for income investors. But why?

Read more »

The letters ETF sit in orange on top of a chart with a magnifying glass held over the top of it
Dividend Investing

Boosting passive income: With a 7.6% yield, is the YMAX ETF a good option?

Is this ETF's yield too good to be true?

Read more »

A man in a business shirt and tie takes a wide leap over a large steel trap with jagged teeth.
Bank Shares

5.75% yield: Are ANZ shares a dividend trap?

ANZ's dividend currently beats out its own term deposits.

Read more »

Man holding out Australian dollar notes, symbolising dividends.
Dividend Investing

Here are 3 buy-rated ASX dividend stocks to beat falling interest rates

Brokers are recommending these stocks to clients.

Read more »

Senior man wearing glasses and a leather jacket works on his laptop in a cafe.
Dividend Investing

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

There are other businesses worth owning for passive income.

Read more »

Happy young couple saving money in piggy bank.
Dividend Investing

3 strong ASX dividend shares to buy instead of CBA

Analysts think these are better options than Australia's largest bank.

Read more »