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Experts say these ASX dividend shares are buys today


Happy man holding Australian dollar notes, representing dividends.

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If you’re looking for ASX dividend shares to buy, then you could do a lot worse than the two listed below.

Both of these ASX dividend shares have recently been named as buys. Here’s why experts say they could be worth considering:

Baby Bunting Group Ltd (ASX: BBN)

The first ASX dividend share for income investors to consider is leading baby products retailer Baby Bunting.

Analysts at Morgans remain positive on the company and currently have an add rating and $3.60 price target on its shares. While disappointed with its first quarter margins, the broker feels that its shares have been oversold. It said:

With the shares nearly 30% lower than they were before the AGM, there has, in our view, been an overreaction to the update. BBN is still the largest specialist in a comparatively defensive retail segment. It still has compelling opportunities to grow its share of a growing market through store rollout, entry into New Zealand, range expansion and the launch of an online marketplace. It’s trading on 12x FY24 P/E. ADD.

In respect to dividends, the broker is forecasting fully franked dividends per share of 14 cents in FY 2023 and then 16 cents in FY 2024. Based on the current Baby Bunting share price of $2.56, this will mean yields of 5.5% and 6.3%, respectively.

Healthco Healthcare and Wellness REIT (ASX: HCW)

Another ASX dividend share to look at is the Healthco Healthcare and Wellness REIT.

Goldman Sachs is a fan of this health and wellness focused real estate investment trust and has a conviction buy rating and $2.05 price target on its shares.

The broker likes the company due to its strong balance sheet, positive tenant mix, and the resilient valuations in the healthcare sector. It commented:

[T]he REIT remains one of our top picks in the sector given 1) its net cash position with over $450mn of liquidity, providing flexibility for near term opportunities, 2) its diversified mix of strong tenant covenants in sub-sectors that are majority government-backed across the care spectrum, mitigating potential tenant credit risks, 3) Healthcare and childcare assets valuations have remained resilient, 4) the expansive forecast future demand for assets across the care spectrum, underpinning development opportunities, and 5) inexpensive valuation.

As well as decent upside, Goldman is expecting attractive dividend yields from the Healthco Healthcare and Wellness REIT.

It has pencilled in dividends per share of 7.5 cents in both FY 2023 and FY 2024. Based on the current Healthco Healthcare and Wellness REIT unit price of $1.58, this will mean yields of 4.75% for income investors.



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