Looking for dividend shares to buy this month? If you are, then you might want to look at the shares listed below.
Here's why these ASX dividend shares are rated as buys:
Image source: Getty Images
Healthco Healthcare and Wellness REIT (ASX: HCW)
The first ASX dividend share to look at is the Healthco Healthcare and Wellness REIT.
As you might have guessed from its name, it is a real estate investment trust with a focus on healthcare and wellness assets such as hospitals, aged care, childcare, life sciences, and primary care properties.
Goldman Sachs is very positive on the company and has a conviction buy rating and $2.08 price target on its shares. It believes the company is one of the best options in the sector for several reasons. It explained:
[Healthco Healthcare and Wellness] 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.
The broker is also expecting some attractive dividend yields in the near term. Goldman is forecasting 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 $1.43, this will mean yields of 5.35% for investors.
Transurban Group (ASX: TCL)
Another ASX dividend share that could be a top option for income investors is Transurban.
It is one of the world's leading toll road operators with a portfolio of important roads and a lucrative pipeline of development projects.
Morgans is a fan of the company and has it on its best ideas list with a $13.85 price target. The broker likes Transurban due to regional population, employment growth, urbanisation, and positive exposure to inflation. It commented:
TCL owns a pure play portfolio of toll road concession assets located in Melbourne, Sydney, Brisbane, and North America. This provides exposure to regional population and employment growth and urbanisation. Given very high EBITDA margins, earnings are driven by traffic growth (with recovery from COVID) and toll escalation (roughly 70% by at least CPI and approximately one-quarter at a fixed c.4.25% pa). We think TCL will continue to be attractive to investors given its market cap weighting (important for passive index tracking flows), the high quality of its assets, management team, balance sheet, and growth prospects
As for dividends, Morgans expects dividends per share of 53.4 cents in FY 2023 and then 65.8 cents in FY 2024. Based on the current Transurban share price of $12.55, this implies yields of 4.25% and 5.25%, respectively.
