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:
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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.
