Morgans Nominates Two High-Yielding ASX Dividend Shares to Buy Now

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Looking for a quality dividend stock to buy in December? If so, you may want to look at the two high-yielding dividend stocks listed below.

This is the reason Morgans Bullish on them:

The first ASX dividend share to look at is Adairs. This is the leading household goods and furniture retailer behind the Adairs and online-only Mocka brands.

The company has also just signed an agreement to acquire Focuson Furniture for $ 80 million. Focus currently operates 23 stores across Australia and generated more than $ 150 million in revenue in 2021.

The Morgans team is willing to do this deal. We believe that it complements our core business and provides opportunities for network expansion. Accordingly, the broker maintained an additional rating and raised the target price of the company’s stock to $ 4.80.

Brokers also forecast full-frank dividends of 23 cents in 2022 and 29 cents in 2023. Based on the current Price-earnings ratio of $ 3.57, this means yields of 6.4% and 8.1%, respectively.

Morgans commented: “ADH believes it’s too cheap for the growth and dividend income it offers. Our estimate is that we’re trading at a single-digit price-earnings ratio of less than nine times in 2011. The expected dividend yield is 8.0%. “

Another ASX dividend share that investors should pay attention to is this mining giant.

Investors are disappointed by the recent downturn in BHP stock prices, but Morgans analysts believe this could be a buying opportunity. The broker recently set an additional rating on the company’s stock and a price target of $ 45.70.

In terms of dividends, brokers forecast a full-frank dividend of $ 3.40 per share in 2022 and $ 2.44 per share in 2023. Based on the current BHP price-earnings ratio of $ 39.95, this means yields of 8.5% and 6.1%, respectively.

Morgans commented:

Morgans Nominates Two High-Yielding ASX Dividend Shares to Buy Now

Source link Morgans Nominates Two High-Yielding ASX Dividend Shares to Buy Now

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