2 dividend shares analysts rate as buys with big yields and even bigger upside


If you’re in the market for some dividend shares, then look no further. Listed below are two highly rated ASX dividend shares that analysts have recently rated as buys with yields greater than 5%.

Here’s what you need to know about them:

Bank of Queensland Limited (ASX: BOQ)

The first ASX dividend share for investors to consider is Bank of Queensland. It could be a good option for investors that don’t already have meaningful exposure to the banking sector. Particularly at the current level, which the team at Morgans sees as very attractive.

Its analysts said: “We see exceptional value in Bank of Queensland’s stock. The Company has been executing well on its transformation program, it continues to grow its home loan book at above-system levels, we don’t expect its NIM to fare worse than the industry-wide trend, and cost synergies associated with the ME Bank acquisition are being realised at a faster rate than originally anticipated.”

Morgans is expecting fully franked dividends per share of 48 cents in FY 2022 and then 55 cents per share in FY 2023. Based on the current Bank of Queensland share price of $8.27, this will mean yields of 5.8% and 6.7%, respectively. The broker also sees plenty of upside for its shares with its $11.00 price target.

HomeCo Daily Needs REIT (ASX: HDN)

Another ASX dividend share to look at is the HomeCo Daily Needs REIT. This property company, which recently merged with Aventus, invests in convenience-based assets across target sub-sectors of neighbourhood retail, large format retail, and health and services.

HomeCo Daily Needs has been a strong performer so far in FY 2022. During the first half, it delivered a 38% increase in funds from operation (FFO) per share to 4 cents, which led to management upgrading its full year guidance. This and recent share price weakness appear to have caught the eye of Goldman Sachs.

It 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. And based on the current HomeCo Daily Needs share price of $1.36, it is expecting dividend yields of 6% in FY 2022 and 6.6% in FY 2023.

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