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Date : 08/11/2021

3 Top ASX Dividend Stocks Recommended By Market Experts

3 Top High Rated ASX Dividend Stocks To Buy

The ASX 200 was down just 4.7 points or 0.1% to $7,452.2 during Monday’s trade, following gains of 1.8% in the previous week as gains in mining and energy companies offset losses in healthcare and financials.

Our List of ASX Dividend Stocks Of 2021

Are you looking for some of the best ASX dividend stocks to buy? If you are, then you might want to look at the ones listed below. Here’s why these 3 top ASX dividend stocks could be in the buy zone, as recommended by our market experts:

BHP Group (ASX: BHP)

BHP Group is arguably the most well-diversified mining and exploration company there is, and it is a part of every investor’s portfolio for different reasons – maybe for the stable shares that pay dividends, or to decrease the overall volatility of the portfolio. However, the BHP share price has come under significant pressure for a few months. However, on Monday, the mining giant’s shares added 0.8% gains to $36.38 per share. This means that BHP shares are now down by 14.2% since year-to-date. What happened to BHP’s top ASX dividend stocks? One of the causes is further weakness in the iron ore price after curtailed steel production in China hit demand for the base metal. Not only did BHP experience such a pullback, but other mining giants went also through the same ride.

China, which is the world’s second-largest economy is aiming to cut steel output growth this year to 2020 levels. Although, after expanding around 12% in the first half of this year, the country is now reducing its steel output by 12.2% from August to December to reach its goal. However, we remain optimistic about the rebound of iron ore prices driven by a return in demand by the end of the first quarter of 2022.

Despite the recent event, BHP ASX shares remains a solid play. The record high dividend shares were the result of operational excellence throughout the year. BHP exhibited solid performance that led to consistent free cash flow generation and an efficient margin of 64%.

Looking forward, BHP is also streamlining its business. Hence, we have seen Woodside Petroleum and BHP announcing their intention to enter a merger commitment to combine their respective oil and gas portfolios by an all-stock merger to create a global top ten independent energy company. This move from BHP will pave the way for the resource giant to move into the Potash business and further focus on developing a net-zero company.

Telstra Corporation Ltd (ASX: TLS)

From telegrams to touch-screen tablets, Telstra is Australia’s largest and longest-running provider of telecommunications and information products and services. It’s also number two on our list of the best dividend stocks ASX listed right now.

Telstra is one of the largest listed companies on the ASX and provides 18.3 million retail mobile services. TLS also serve 3.7 million retail fixed bundles and standalone data services and 1.4 million retail fixed standalone voice services within Australia. Telstra is also present in twenty countries around the globe.

Telstra is another interesting listing among the top ASX dividend stocks. This telco could be a top option due to its ever-improving outlook. The company is leading the 5G. It is very efficient in asset monetisation, and cost-cutting. Combined, these are expected to allow the company to return to growth in FY22.

Pleasingly, that isn’t expected to be a one-off. We expect sustainable growth over the medium term through the newly announced T25 strategy. From a metrics perspective, Telstra is looking for the T25 strategy to boost its service quality across departments. Hopefully, this would improve the company’s overall performance.

Brokers and analysts have recognised the potential of the T25 strategy. Hence, analysts are issuing a buy rating and a $4.40 price target on TLS as one of the best ASX dividend shares on the charts. As a result, we expect the new strategy to support 16 cents per share dividends through to FY23. After which, we could anticipate the first increase in a decade to 18 cents per share onward FY24.

Based on the current Telstra share price of $3.97, this will mean fully franked of about 4% high dividend yield stocks for the next couple of years before the increases.

Rural Funds Group (ASX: RFF)

The last on our list of top ASX dividend stocks to look at today is Rural Funds. It is an Australian agricultural property company with a portfolio of high-quality assets across five sectors. These comprise almonds, cattle, vineyards, cropping, and macadamias.

These high-quality properties are leased to some of the biggest players in the agricultural sector such as Treasury Wine Estates Ltd (ASX: TWE) and Select Harvests Ltd (ASX: SHV) on long term leases.

For example, at the last count, the company’s weighted average lease expiry stood at 9.3 years. Combined with periodic rental increases, this gives Rural Funds as one of the ASX high dividend stocks great visibility on its future earnings and allows management to target distribution growth of 4% each year.

Speaking of which, in FY22 the company intends to increase its distribution by its target rate to 11.73 cents per share. Based on the current Rural Funds share price of $2.88, this represents an attractive dividend yield superior to 4%.

Are You Looking To Buy The Best Stocks In 2024?

Stay on top of upcoming market trends! Whether you are an SMSF investor or a young investor with your portfolio, we cover a wide range of stocks across all sectors, including mining, financials, industrials, real estate, technology, health and biotech, etc. It will give you an edge to invest and trade ASX listed stocks across large, mid and small caps with an advantage.

Get stock tips with our Market Experts. We help self-directed investors and self-managed super funds (SMSF) make smarter investment decisions and get better returns. Fill in your details and download your free Report instantly for Top 3 Dividend Stocks to buy in 2024!


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