There are a good number of quality ASX 50 dividend shares to choose from on the Australian share market.
Two that have recently been tipped as buys are listed below. Here's what analysts are saying about them:
Telstra Group Ltd (ASX: TLS)
This telco giant has been named as an ASX 50 dividend share to buy.
According to a note out of Goldman Sachs, its analysts have a buy rating and a $4.80 price target on the telco giant's shares. It commented:
We believe the low risk earnings (and dividend) growth that Telstra is delivering across FY22-25, underpinned through its mobile business, is attractive. We also believe that Telstra has a meaningful opportunity to crystalise value through commencing the process to monetize its InfraCo Fixed assets – which we estimate could be worth between A$22-33bn. Although there is some debate around the strategic benefits, we see a strong rationale for monetizing the recurring NBN payment stream, given its inflation linked, long duration cash flows could be worth $14.5bn to $17.9bn, with no loss strategic benefit.
As for dividends, Goldman is expecting dividends per share of 17 cents in FY 2023 and 18 cents in FY 2024. Based on the current Telstra share price of $4.32, this will mean dividend yields of 3.9% and 4.15%, respectively.
Wesfarmers Ltd (ASX: WES)
Another ASX 50 dividend share that has been named as a buy is Wesfarmers.
Morgans is very positive on the Bunnings and Kmart owner and has an add rating and $55.60 price target on its shares.
The broker believes Wesfarmers is well-positioned in the current environment thanks to its focus on value and experienced management team. It commented:
WES possesses one of the highest quality retail portfolios in Australia with strong brands including Bunnings, Kmart and Officeworks. The company is run by a highly regarded management team and the balance sheet is healthy. We believe WES's businesses, which have a strong focus on value, remain well-placed for growth and market share gains in a softening macroeconomic environment.
In respect to dividends, Morgans is forecasting fully franked dividends per share of $1.79 in FY 2023 and $1.92 in FY 2023. Based on the current Wesfarmers share price of $50.01, this will mean yields of 3.6% and 3.8%, respectively.
