Here are 2 ASX dividend shares experts say are buys


Are you looking for dividend shares to add to your income portfolio? If you are, then the two listed below could be worth considering.

These dividend shares have been rated as buys and tipped to provide income investors with big yields.

Here’s what you need to know about them:

HomeCo Daily Needs REIT (ASX: HDN)

The first ASX dividend share for income investors to look at is the HomeCo Daily Needs REIT. It is a property company investing in neighbourhood retail, large format retail, and health and services.

Goldman Sachs is a fan of the company and has a buy rating and $1.70 price target on its shares. The broker believes it is well positioned to benefit from the shift to omni channel retailing.

Goldman commented:

We continue to 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.

In respect to dividends, Goldman 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 $1.27, this will mean dividend yields of 6.3% and 7.1%, respectively.

Another ASX dividend share to look at is South32. It is diversified mining and metals company producing a range of commodities. This includes alumina, aluminium, bauxite, coal, copper, manganese, nickel, and silver across operations in Australia, Southern Africa and South America.

Citi is a big fan of the company. It currently has a buy rating and $5.50 price target on the miner’s shares. The broker believes the company’s shares are trading at an attractive level. It commented:

S32 held a strategy update today and there was little to change baseline forecasts save for higher FY23/24 capex. Costs pressures are evident – but are industry not company specific. S32 has production growth, trades at a discount to DCF and on low valuation multiples. What’s not to like compared to peers.

As for dividends, the broker is forecasting fully franked dividends per share of 38 cents in FY 2022 and 40 cents in FY 2023. Based on the current South32 share price of $4.16, this will mean yields of 9.1% and 9.6%, respectively.

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