If you're looking for dividend shares to buy to boost your passive income, then you may want to look at the two listed below.
Here's why analysts rate these ASX dividend shares highly:
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South32 Ltd (ASX: S32)
The first ASX dividend share that could give your passive income a big boost is mining giant South32.
Citi is positive on the company and believes it could provide investors with very big dividend yields in the near term. It recently said:
1H FY23 profit of US$560m was better than expected. Importantly, FY23 prodn and cost guidance was maintained. FY24 prodn guidance points to modestly higher output in FY24. […] S32 now trades at 0.94x NPV vs RIO at 1.0x and FMG 1.3x. We raise our TP to $5.05 and stay Buy rated. We believe S32 has not yet run to full valuation levels trading on FY24E EV/EBITDA of 4x vs peers at >5x
As for dividends, the broker is forecasting fully franked dividends of 28 cents per share in FY 2023 and 32 cents per share in FY 2024. Based on the current South32 share price of $4.12, this will mean yields of 6.8% and 7.8%, respectively.
Citi has a buy rating and $5.05 price target on South32's shares.
Woolworths Limited (ASX: WOW)
Another ASX dividend share that has been named as a buy is Woolworths.
It is the retail giant behind Woolworths supermarkets and Big W, among others.
Goldman Sachs is positive on the retailer due to its strong customer loyalty and omni-channel advantage. It explained:
We are Buy rated (on Conviction List) on the stock as we believe the business has one of the highest consumer stickiness and loyalty among peers, and hence has strong ability to drive market share gains via its omni-channel advantage, as well as pass through any cost inflation to protect its margins, beyond market expectations.
In respect to dividends, Goldman is forecasting fully franked dividends of $1.06 per share in FY 2023 and $1.14 per share in FY 2024. Based on the current Woolworths share price of $37.46, this will mean yields of 2.8% and 3%, respectively.
Goldman currently has a conviction buy rating and $41.00 price target on the company's shares.
