Fortunately for income investors, there are plenty of dividend shares to choose from on the Australian share market.
But two in particular that could be top buys right now are listed below. Here's why analysts say these could be the ASX dividend shares to buy:
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HomeCo Daily Needs REIT (ASX: HDN)
The first ASX dividend share to look at is HomeCo Daily Needs. It is a property investment company with a focus on convenience-based assets.
Morgans is a fan of the company. This is because it believes HomeCo Daily Needs is in a great position to benefit from "accelerating click & collect trends" and its development pipeline.
It expects this to support dividends per share of 8.3 cents in FY 2023 and then 8.4 cents in FY 2024. Based on the current HomeCo Daily Needs share price of $1.18, this will mean dividend yields of 7% and 7.1%, respectively.
The broker also sees plenty of value in its shares at the current level. The broker has an add rating and a $1.50 price target on its shares, which implies a potential upside of 27%.
South32 Ltd (ASX: S32)
Another ASX dividend share that could be a buy is diversified mining giant, South32.
Analysts at Goldman Sachs are very positive on the miner due to its attractive valuation, the favourable outlook of key commodities, and the potential for big dividends in the near future.
In respect to the latter, Goldman is forecasting fully franked dividends of 9 US cents per share in FY 2023 and then 16 US cents per share in FY 2024. This represents 3.6% and 6.4% yields, respectively.
As with Morgans and HomeCo Daily Needs, the broker also sees value in South32's shares at the current level. Goldman has a buy rating and a $4.10 price target on them, which implies a potential upside of 9%.
