2 ASX dividend shares analysts have named as buys for income investors


Are you looking for some dividend options for your portfolio? If you are, check out the two ASX shares listed below.

Here’s what analysts are saying about these ASX dividend shares:

HomeCo Daily Needs REIT (ASX: HDN)

The first ASX dividend share that could be a buy is the HomeCo Daily Needs REIT.

It is a property company focused on neighbourhood retail, large format retail, and health and services assets.

The team at Goldman Sachs is very positive on the company and sees it as well-placed to benefit from consumer trends.

The broker commented: “We believe HDN is undervalued at its current valuation given its diversified tenant base, and see it as well positioned to benefit from the shift to omni channel retailing, with additional external growth opportunities to drive earnings growth over the medium-term.”

Goldman has a buy rating and $1.70 price target on its shares. It is also forecasting dividends per share of 8 cents in FY 2022 and 9 cents in FY 2023. Based on the current HomeCo Daily Needs share price of $1.43, this will mean dividend yields of 5.6% and 6.3%, respectively.

Another ASX dividend share that has been tipped as a buy is Transurban.

It is one of world’s leading toll road operators with a portfolio of key roads in Australia and North America.

Analysts at Morgans believe it could be a good option for investors. Particularly given the positive outlook for dividend increases in the coming years thanks to favourable trends and the normalisation of trading conditions post-COVID. Morgans has an add rating and $14.42 price target.

It said: “We view TCL as a high quality pure-play toll road infrastructure portfolio benefitting from employment and population growth, urbanisation, and the value of time, with particular exposure to the east coast capital cities in Australia.”

As for dividends, the broker is forecasting dividends per share of 37 cents in FY 2022 and then 60 cents in FY 2023. Based on the current Transurban share price of $14.34, this implies yields of 2.6% and 4.2%, respectively.

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