If you're in the process of building an income portfolio, then you might want to look at the shares listed below.
Here's why these ASX dividend shares could be in the buy zone:
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Mineral Resources Limited (ASX: MIN)
If you're not averse to investing in the resources sector, then you might want to consider Mineral Resources. It is a mining and mining services company with exposure to two of the hottest commodities around – iron ore and lithium. It is thanks largely to its iron ore operations that the company has been tipped to reward shareholders handsomely with dividends over the next couple of years.
For example, analysts at Macquarie are forecasting dividends of $3.32 per share in FY 2021 and then $3.05 per share in FY 2022. Based on the latest Mineral Resources share price of $48.54, this will mean fully franked yields of 6.8% and 6.3%, respectively, over the next two financial years.
Macquarie currently has an outperform rating and $73.00 price target on the company's shares.
Suncorp Group Ltd (ASX: SUN)
Another dividend share to look at is Suncorp. Thanks to improving trading conditions which are being underpinned by Australia's strong economic recovery, this banking and insurance giant appears well-placed to pay attractive dividends to shareholders in the near term.
The analysts over at Citi certainly believe this will be the case. In fact, the broker suspects that things are going so well that a special dividend could be declared this year. Citi is forecasting dividends of 61 cents per share in FY 2021 and then 58 cents per share in FY 2022.
With the Suncorp share price currently fetching $11.28, this implies fully franked yields of 5.4% and 5.1%, respectively, over the next two years. Citi has a buy rating and $11.80 price target on its shares.
