Broker names 2 ASX dividend shares to buy next week

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, then it could be worth checking out the two that Morgans is tipping as buys.

Here's what you need to know about them:

Dexus Industria REIT (ASX: DXI)

Morgans is tipping this industrial and office property company as a dividend share to buy.

That's because it believes Dexus Industria is well-placed for growth thanks to strong demand in the industrial market.

The broker 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.

As for 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 $2.85, this will mean yields of 5.8% and 5.9%, respectively.

Santos Ltd (ASX: STO)

Another ASX dividend share that Morgans rates as a buy is Santos.

It is of course one of the region's largest energy producers and the owner of a collection of high quality operations thanks to its recent merger with Oil Search. From these operations, it is aiming to deliver production of 103-106 million barrels of oil equivalent (mmboe) this calendar year.

Morgans is positive on the company due to its growth prospects and diversified earnings base. It has an add rating and $9.00 price target on its shares. The broker commented:

The resilience of STO's growth profile and diversified earnings base see it well placed to outperform against a backdrop of a broader sector recovery. While pre-FEED, we see Dorado as likely to provide attractive growth for STO, while its recent acquisition increasing its stake in Darwin LNG has increased our confidence in Barossa's development.

In respect to dividends, Morgans is expecting dividends per share of 22.8 cents in FY 2022 and 24.2 cents in FY 2023. Based on the current Santos share price of $7.50, this will mean yields of 3% and 3.2%, respectively.

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

Happy woman looking for groceries. as she watches the Coles share price and Woolworths share price on her phone
Dividend Investing

Buy Coles and these ASX 200 dividend shares

Analysts are tipping these stocks as buys for income investors.

Read more »

A happy older couple relax in a hammock together as they think about enjoying life with a passive income stream.
Dividend Investing

2 ASX dividend shares I'd buy for the long term

These stocks are rewarding for passive income.

Read more »

A young female investor sits in her home office looking at her ipad and smiling as she sees the QBE share price rising
Dividend Investing

Brokers say these ASX dividend stocks are great buys

Analysts have put buy ratings on these income stocks. Let's see what they offer.

Read more »

Man holding Australian dollar notes, symbolising dividends.
Dividend Investing

A closer look at the 8% dividend yield forecast for this ASX All Ords stock

This could be one of the best stocks for dividends for 2025.

Read more »

Calculator on top of Australian 4100 notes and next to Australian gold coins.
Dividend Investing

4 ASX All Ords shares with ex-dividend dates this week

It won't be long until it's pay day for owners of these shares.

Read more »

Happy young couple saving money in piggy bank.
Dividend Investing

2 excellent ASX dividend shares to buy this week

Analysts think these income options could be good portfolio additions.

Read more »

An Australian farmer wearing a beaten-up akubra hat and work shirt leans on a fence with livestock in the background and a blue sky above.
Dividend Investing

1 ASX dividend stock down 41% I'd buy right now

This stock can provide fertile passive income.

Read more »

a man in a business suite throws his arms open wide above his head and raises his face with his mouth open in celebration in front of a background of an illuminated board tracking stock market movements.
Dividend Investing

Bell Potter says these ASX dividend stocks are top buys in November

Let's find out why the broker is feeling bullish about these dividend payers.

Read more »