Buy these ASX dividend shares for a passive income: experts

These dividend shares could boost your passive income…

| More on:

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 looking to boost your passive income this year, then you may want to look at the shares listed below.

These ASX shares have been tipped to pay their shareholders very attractive dividends in 2023. Here's what you need to know about them:

Close-up photo of a back jean pocket with Australian dollar bills in it and a hand reaching in to collect the notes

Image source: Getty Images

Accent Group Ltd (ASX: AX1)

The first ASX dividend share that has been named as a buy is Accent.

The footwear and youth apparel retailer could be a top option for investors according to Goldman Sachs.

The broker believes that Accent's numerous retail brands are well-placed in the current environment due their strong market position and exposure to younger consumers. Goldman expects the latter to continue spending as normal in 2023 due to a rise in the minimum wage and lower exposure to rising interest rates.

The broker expects this to lead to fully franked dividends of 10.2 cents per share in FY 2023 and 11.4 cents per share in FY 2024. Based on the current Accent share price of $1.78, this will mean yields of 5.7% and 6.4%, respectively.

Goldman has a buy rating and $2.20 price target on the company's shares.

South32 Ltd (ASX: S32)

Another ASX dividend share that has been named as a buy is South32.

Morgans is very positive on this mining giant, which owns a diverse collection of operations that provide exposure to commodities including aluminium, copper, manganese, and nickel.

Its analysts like South32 due to its "clear exposure to a recovery scenario for China growth" and its portfolio transformation and strong balance sheet. It sees the latter as "supporting potential for further M&A."

As for dividends, Morgans is expecting South32 to pay fully franked dividends per share of 23 cents in FY 2023 and 21.6 cents in FY 2024. Based on the current South32 share price of $4.45, this will mean yields of 5.15% and 4.9%, respectively.

The broker has an add rating and $5.30 price target on South32's shares.

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 recommended Macquarie Group. 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

Person pointing at an increasing blue graph which represents a rising share price.
Dividend Investing

3 ASX dividend shares raising dividends like clockwork

These businesses offer investors attractive and growing passive income.

Read more »

two young boys dressed in business suits and wearing spectacles look at each other in rapture with wide open mouths and holding large fans of banknotes with other banknotes, coins and a piggybank on the table in front of them and a bag of cash at the side.
Dividend Investing

I'd buy this ASX dividend stock in any market

I think the market is vastly underrating this business.

Read more »

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

How many shares in this high-dividend toll road stock do you need for a $10,000 income stream?

This company is paying above average returns at the moment.

Read more »

An older gentleman leans over his partner's shoulder as she looks at a tablet device while seated at a table.
Dividend Investing

17,875 shares of this ASX dividend star pays an income equal to the Age Pension

I’d rather get income from this ASX dividend stock than the Age Pension...

Read more »

Man ponders a receipt as he looks at his laptop.
Dividend Investing

If I invest $10,000 in BHP shares, how much passive income will I receive in 2027?

Would it be worth adding the mining giant to an income portfolio? Let's find out.

Read more »

Man holding Australian dollar notes, symbolising dividends.
Dividend Investing

2 top ASX dividend shares I just bought for my portfolio with $2,000

These businesses offer investors a lot of positives…

Read more »

Australian dollar notes and coins in a till.
Dividend Investing

How many ANZ shares do I need to buy for $10,000 a year in passive income?

ANZ shares have a lengthy track record of paying two dividends a year.

Read more »

Woman calculating dividends on calculator and working on a laptop.
Dividend Investing

The ASX dividend stocks I'd trust for long-term income

The best income portfolios are not built on excitement. They are built on consistency that holds up across cycles.

Read more »