Looking for some dividend shares to add to your income portfolio? If you are, you may want to look at the two listed below that have been tipped as buys by Morgans.
Here's what you need to know about these ASX dividend shares:
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Telstra Corporation Ltd (ASX: TLS)
The first ASX dividend share that Morgans has tipped as a buy is telco giant Telstra.
It has been a difficult few years for Telstra, but the company has finally returned to form and looks well placed to build on this in the coming years. This is thanks to improving trading conditions and the new T25 strategy which is aiming to deliver solid and sustainable earnings growth.
In addition, Morgans highlights that its company restructure could unlock value for shareholders. That's because it believes the market is undervaluing some of the telco's assets that could be sold off.
As for dividends, Morgans is expecting Telstra to continue to pay fully franked 16.5 cents per share dividends in FY 2023 and FY 2024. Based on the current Telstra share price of $3.93, this equates to yields of 4.2%.
Morgans has an add rating and $4.60 price target on the company's shares.
Wesfarmers Ltd (ASX: WES)
Another ASX dividend share that Morgans has tipped as a buy is Wesfarmers.
It is the owner of a diverse group of businesses. These include Coregas, Covant Lithium, Kmart, Officework, Priceline, and Bunnings.
Morgans is a big fan of the company due to its "quality retail portfolio" and "highly regarded management team." Overall, it believes the company is well-placed for the future and continues "to view WES as a core portfolio holding for long-term investors."
As for dividends, Morgans is forecasting fully franked dividends per share of $1.82 in FY 2023 and $1.89 in FY 2024. Based on the current Wesfarmers share price of $46.24, this will mean yields of 3.9% and 4.1%, respectively.
The broker has an add rating and $55.60 price target on its shares.
