Morgans names 2 ASX dividend shares to buy with big yields

These dividend shares have been named as buys by a top broker…

| More on:
A senior couple discusses a share trade they are making on a laptop computer

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

If you're searching for dividend shares to buy, then the two listed below could be worth looking at.

Both have been named as buys by analysts at Morgans and tipped to provide big yields. Here's what you need to know:

Dexus Industria REIT (ASX: DXI)

The first ASX dividend share that Morgans rates as a buy is Dexus Industria. It is an industrial and office property company.

The broker believes that Dexus Industria is well-placed for growth thanks to strong demand in the industrial market.

Morgans currently has an add rating and $3.25 price target on the company's shares. It commented:

DXI's key industrial markets remain robust with the outlook for solid rental growth backed by strong tenant demand. The development pipeline also provides near and medium term upside potential. A key focus will be the leasing up of the business park assets and a potential divestment could be a positive catalyst. While the portfolio remains well positioned we acknowledge there will be near-term uncertainty around interest rates.

In respect to dividends, the broker is forecasting dividends per share of 16.4 cents in FY 2023 and 16.9 cents in FY 2024. Based on the current Dexus Industria share price of $2.63, this will mean yields of 6.2% and 6.4%, respectively.

Incitec Pivot Ltd (ASX: IPL)

Another ASX dividend share that Morgans rates as a buy is Incitec Pivot. It is a manufacturer and distributor of industrial explosives, industrial chemicals, and fertilisers to the agriculture and mining industries.

Morgans believes the company is positioned to benefit from high fertiliser prices and the economic recovery. It also sees positives from its demerger plans.

The broker has an add rating and $4.45 price target on the company's shares. It said:

With fertiliser prices holding at historically high levels and possibly moving higher over coming months given Russia's invasion of the Ukraine, which is increasing gas prices, soft commodity prices and impacting fertiliser supply chains, the fundamentals for IPL are very positive. It is also benefiting from favourable seasonal conditions in Australia. It also has strong exposure to an economic recovery through its explosives business (solid demand for resources and Q&C will benefit from US stimulus packages). IPL believes that its demerger plans of its Fertilisers (Incitec Pivot Fertilisers) and Explosives (Dyno Nobel) businesses to create two separately listed companies on the ASX will create further value for shareholders.

As for dividends, Morgans is expecting fully franked dividends per share of 25 cents in FY 2022 and 19 cents in FY 2023. Based on the current Incitec Pivot share price of $3.64, this will mean yields of 6.9% and 5.2%, respectively.

Should you invest $1,000 in Dexus right now?

Before you buy Dexus shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Dexus wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 7 February 2025

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 Scott Phillips.

More on Dividend Investing

Two mature-age people, a man and a woman, jump in unison with their arms and legs outstretched on a sunny beach.
Dividend Investing

2 ASX 300 shares I'd buy after the RBA's rate cut

I think these two stocks can help build wealth.

Read more »

A man in a suit looks serious while discussing business dealings with a couple as they sit around a computer at a desk in a bank home lending scenario.
Dividend Investing

Buy these ASX dividend shares to beat falling interest rates

Analysts think these buy-rated shares could help investors overcome interest rate cuts.

Read more »

A man holding a cup of coffee puts his thumb up and smiles while at laptop.
Dividend Investing

Guess which 3 ASX dividend stocks are top picks for analysts

Let's see what analysts are tipping as buys this month.

Read more »

Woman and man calculating a dividend yield.
Dividend Investing

Here's why IAG shares are in the red on Tuesday

Why is this ASX insurance juggernaut in the red?

Read more »

Australian dollar notes in the pocket of a man's jeans, symbolising dividends.
Dividend Investing

Want passive income? These ASX 200 dividend shares offer big yields

Analysts have buy ratings on these shares. Let's see what they are forecasting.

Read more »

A young woman holding her phone smiles broadly and looks excited, after receiving good news.
Dividend Investing

4 excellent ASX dividend stocks to buy this month

Let's see which shares analysts are tipping as buys for income investors.

Read more »

Woman with headphones on relaxing and looking at her phone happily.
Dividend Investing

2 unloved ASX dividend shares I'd buy for income right now

These stocks offer good dividend buying, in my view.

Read more »

A woman in a bright yellow jumper looks happily at her yellow piggy bank representing bank dividends and in particular the CBA dividend
Dividend Investing

Looking to bank the boosted CBA dividend? You better hurry!

On the hunt for passive income?

Read more »