The great news for income investors is that there are a large number of quality ASX dividend shares to choose from on the ASX.
Two that have been tipped as buys by analysts at Morgans are listed below. Here's what the broker is saying about them:
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Dalrymple Bay Infrastructure Ltd (ASX: DBI)
The ASX dividend share that has been named as a buy is Dalrymple Bay Infrastructure.
This Australian infrastructure company is the long term operator of the Dalrymple Bay Coal Terminal (DBCT), which provides terminal infrastructure and services for producers and consumers of Australian coal.
Morgans appears to believe it is well-placed to pay bumper dividends in the near term thanks to the strong demand for coal and its position as the cheapest export route-to-market for users within its Bowen Basin catchment region. It said:
DBCT offers the cheapest export route-to-market for users within its Bowen Basin catchment region. DBCT is fully contracted from 2023 to 2028. Following the successful outcome to its customer tariff negotiations, DBI should be able to deliver resilient, inflation-linked, and very high margin revenues and has provided distribution guidance that implies c.8% cash yield growing at 3-7% pa.
As for dividends, its analysts are forecasting dividends per share of ~21 cents in FY 2023 and FY 2024. Based on the latest Dalrymple Bay Infrastructure share price of $2.48, this will mean yields of 8.5%.
Morgans has an add rating and $2.67 price target on its shares.
Telstra Corporation Ltd (ASX: TLS)
Another ASX dividend share that has been named as a buy by Morgans is telco giant Telstra.
The broker likes the company due to its successful turnaround via the T22 strategy, its new growth strategy, the recently approved restructure, and positive industry conditions. In respect to the latter, it noted:
Telco has the strongest tailwinds in a decade with an increasingly rational market, price rises across the majors and the criticality of telco increasingly recognised.
In respect to dividends, the broker is expecting Telstra to continue to pay fully franked 17 cents per share dividends in both FY 2023 and FY 2024. Based on the current Telstra share price of $4.16 this equates to yields of 4.1%.
Morgans has as an add rating and $4.70 price target on the company's shares.
