There are a handful of high-yielding ASX dividend shares that brokers love right now.
It's one thing for a single analyst to like a business. But it's something else when many analysts all like a company at the same time. It may suggest there is an opportunity there. Or it's possible that all of those brokers may be wrong with their 'buy' ratings.
Whilst interest rates are predicted to go higher, the actual interest rate is still very low which may make high-yield stocks more attractive.
Here are two high-yield ASX dividend shares that are well-liked by brokers:
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Whitehaven Coal Ltd (ASX: WHC)
Whitehaven is one of the biggest coal miners in Australia. It currently operates four mines in the Gunnedah Basin of NSW. Four of its mines are: the Maules Creek Mine, the Narrabri Mine, the Tarrawonga Mine, and the Werris Creek Mine.
It's currently rated as a buy by at least six brokers.
The Whitehaven share price has risen by 45% since the start of 2022. This is on the back of coal prices rising in recent times amid the Russian invasion of Ukraine.
As a resource business, the higher the coal price, the more revenue and profit Whitehaven can generate. That higher profit can then fund higher dividend payments.
Credit Suisse is one of the brokers that rates Whitehaven as a buy, with a price target of $4.70. That suggests a possible upside of close to 20%.
The broker is expecting a much bigger dividend in FY23 from the high-yield ASX dividend share. Credit Suisse is currently expecting a 11.5% yield in FY23.
Telstra Corporation Ltd (ASX: TLS)
Telstra has been one of the largest dividend payers on the ASX over the last 20 years.
The Telstra board has committed to try to pay a dividend of 16 cents per share until it can start growing the dividend.
The company has been working on reducing its cost base, monetising its assets, and growing customer satisfaction under its T22 strategy.
Telstra is now looking towards its T25 strategy. This includes further cost cuts, expansion of 5G coverage, and an aim to grow profit margins.
It has also been making acquisitions to expand and diversify its earnings, such as through its MedicalDirector and Digicel Pacific businesses.
At least four brokers, including Morgan Stanley, are rating Telstra as a buy. The price target on Telstra is $4.60, that's around 16% higher than where it is now.
Morgan Stanley likes the recent regional mobile network agreement that Telstra signed with TPG Telecom Ltd (ASX: TPG), which adds to Telstra's earnings and allows Telstra to get access to TPG's regional spectrum.
The broker is expecting Telstra to pay a grossed-up dividend yield of 5.8% in FY22 and FY23.
