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Experts name 2 ASX dividend shares with big yields to buy

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Looking for some dividend shares to add to your income portfolio? If you are, you may want to look at the two listed below.

Both have been rated as buys by analysts and tipped to provide investors with big dividends. Here’s what you need to know about these ASX dividend shares:

HomeCo Daily Needs REIT (ASX: HDN)

The first ASX dividend share to look at is the HomeCo Daily Needs REIT.

It is a property company that invests in convenience-based assets across target sub-sectors of neighbourhood retail, large format retail, and health and services.

The team at Goldman Sachs are positive on its outlook and believe its shares are undervalued at current levels. 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.

In respect to dividends, the broker is 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 $1.34, this will mean dividend yields of 6% and 6.7%, respectively.

Another ASX dividend share that is rated as a buy is South32.

It is diversified mining and metals company producing a range of commodities. This includes green metals such as aluminium, copper, and nickel.

Morgans is a big fan of the company following changes to its portfolio. It commented:

We see attractive long-term value potential in S32 from de-risking of its growth portfolio, the potential for further portfolio changes, and an earnings-linked dividend policy.

The broker currently has an add rating and $6.10 price target on the miner’s shares.

As for dividends, Morgans is forecasting fully franked dividends in the region of 26 cents per share in FY 2022 and 35 cents per share in FY 2023. Based on the current South32 share price of $3.99, this equates to yields of 6.5% and 8.8%, respectively.

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