2 ASX dividend shares to buy right now: brokers

These two ASX dividend shares are well-liked by brokers.

| More on:
Woman holding out $20 dollar Australian notes, symbolising dividends.

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

Key points

  • ASX dividend shares could be a way to boost investment income
  • Centuria Office REIT is the biggest office pure play in Australia
  • Atlas Arteria Group is a sizeable global toll road operator

In this period of volatile returns, the ability to receive cash payments as dividends (or distributions) from ASX dividend shares could be very useful and more consistent.

Brokers are always on the lookout for investment opportunities. If they think that a business is at good value, they'll rate it as a 'buy', 'outperform' or something similar.

Some businesses are also expected to pay attractive dividends or distributions in FY22.

These two ASX dividend shares are rated as buys:

Centuria Office REIT (ASX: COF)

This real estate investment trust (REIT) is rated as a buy by at least three brokers, including Morgans.

The broker has a buy rating on the business with a price target of $2.50. That's approximately 10% higher than where it is today.

As the name may suggest, it provides exposure to office real estate, it's the largest in Australia. Centuria says that it's predominantly exposed to metropolitan and near city office markets that are well connected to transport and lend themselves to affordable rents.

When the ASX dividend share released its FY22 first half result, it said that it has 23 assets worth $2.3 billion, with a portfolio occupancy of 94.3% and a weighted average lease expiry (WALE) of 4.3 years.

The FY22 funds from operations (FFO) – the rental profit – is now expected to be 18.3 cents per unit. This is expected to fund a forecast FY22 distribution per unit of 16.6 cents.

At the current Centuria Office REIT share price, its guidance translates into a FY22 yield of 7.4% and further growth in FY23.

Atlas Arteria Group (ASX: ALX)

This business is a global toll road operator. It is smaller than Transurban Group (ASX: TCL), but still has a very sizeable market capitalisation of $6.1 billion according to the ASX.

It owns, operates and develops toll roads. Atlas Arteria wants its roads to reduce travel time, give greater time certainty, reduce fuel consumption and carbon emissions.

The business has investments in toll roads in France, the US and Germany.

Atlas Arteria recently announced its full-year result for the 12 months to December 2021.

Traffic is continuing to recover despite the ongoing impacts of COVID. Weighted average traffic in 2021 was 18.6% higher than 2020 and only 8.4% below 2019.

It made statutory net profit after tax (NPAT) of $163.7 million, compared to a net loss of $99.2 million in 2020. Net profit after tax excluding notable items was $179.1 million, up from 2020's net profit of $26.2 million.

The ASX dividend share is rated as a buy by at least four brokers, including Credit Suisse which has a price target of $7.15. That's more than 10% higher than today's level.

Credit Suisse is expecting distribution growth in FY22, with a projected yield of 6.5%.

Motley Fool contributor Tristan Harrison 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 young woman dressed in street clothes leaps happily in the air with the focus on her bright red boots that are front and centre for the camera.
Dividend Investing

This ASX dividend share is projected to pay a 10% yield by 2028

Analysts are expecting big payouts from this business.

Read more »

A couple sits in their lounge room with a large piggy bank on the coffee table. They smile while the male partner feeds some money into the slot while the female partner looks on with an iPad style device in her hands as though they are budgeting.
Dividend Investing

Want to turn $20K into a $1K second income? Here's how

ASX shares can pay you upfront for buying them...

Read more »

A man and woman sit next to each other looking at each other and feeling excited and surprised after reading good news about their shares on a laptop.
Dividend Investing

2 ASX dividend shares I think are great value today

These two stocks offer a lot of what I’m looking for.

Read more »

Excited couple celebrating success while looking at smartphone.
Dividend Investing

Buy Woodside and these ASX dividend stocks

Brokers have put buy ratings on these dividend payers.

Read more »

A woman sits at her computer with her chin resting on her hand as she contemplates her next potential investment.
Bank Shares

Macquarie share price higher amid DRP dividend news

Macquarie has announced the share price of stock to be allocated through its dividend reinvestment plan.

Read more »

Couple looking very happy while shopping at a home improvement store.
Dividend Investing

Focused on pasive income? Check out this defensive ASX 200 dividend stock

A leading expert says this quality ASX 200 dividend stock remains ‘undervalued’.

Read more »

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

2 ASX shares that I think are buys for both growth and dividends

These businesses offer so much potential.

Read more »

Worker inspecting oil and gas pipeline.
Dividend Investing

Should I buy Woodside shares today for their 8% dividend yield?

With an 8% dividend yield and a resurgent share price, should I buy Woodside shares right now?

Read more »