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Date : 18/10/2021

Top Dividend Stocks on ASX Recommended By Market Experts

3 Top High Rated ASX Dividend Stocks To Buy

Investors are focusing on the yellow metal today. Hence, Gold was down in the morning session, recouping some losses after a steep sell-off during the previous session as U.S. bond yields eased. Gold futures inched down 0.03% to US$1,767.75. At the time of writing, gold is clawing back losses after sliding 1.6% on Friday.

The U.S. 10-year Treasury yields eased after rising to a high of 1.6% on Monday. Meanwhile, the dollar, which usually moves inversely to gold, edged up on Monday. However, it slipped 0.6% from the previous week’s highs, capping the yellow metal’s losses. Although investors are betting that inflation could mean earlier-than-expected interest rate hikes from the Fed, other central banks might be less aggressive over the tightening cycle. However, The BOE’ Governor Bailey said on Sunday that the central bank is prepping an interest rate hike as inflation risks mount.

At the moment of writing, the ASX 200 remains relatively flat, starting the week with just 0.09% gains over Friday’s session.

Our List of ASX Dividend Stocks Of 2021

During this period of uncertainty, investing in these top dividend stocks might be the smartest move. Hence, here are the top dividend stocks on ASX as recommended by our market experts:

Dexus (ASX: DXS)

Dexus (ASX: DXS) is a solid ASX dividend stock. Hence, it is a leading Australian real estate group. The firm is holding the title of Australia’s biggest owner and manager of commercial property.

Most Dexus’ earnings are generated from the rental income received from its directly owned Australian property portfolio. This portfolio is weighted towards the CBD office markets along the eastern seaboard. Additionally, Dexus has an unlisted funds management business through which it derives income from management fees.

Dexus ASX shares have been on the move lately since the company announced the acquisition of a $1.5 billion industrial property portfolio. Dexus Property Group has managed to get its hands on the Jandakot Airport in Perth, a fund-through development in NSW and a Victorian logistics facility that is leased to AusPost. It is raising $350 million by issuing additional equity at $3.45 per share to finance the deal taking place with APN Industria REIT (ASX: ADI).

According to Dexus Property Group, its moves to purchase the portfolio form part of its agenda to invest in more sustainable areas to generate revenue.

Despite the positive news, Dexus shares have fallen into the red today. The Dexus share price slipped 0.56% lower than Friday’s closing price. At the time of writing, the REIT is trading for $10.64 a share. This could be the right timing to grab some Dexus shares considering that DXS has returned 13% plus year-to-date. Furthermore, Dexus is offering a lucrative ASX dividend yield superior to 5%.

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.

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 share on our list of top dividend stocks. The Telstra share 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 its Telstra shares. 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 $3.86, this will mean fully franked 4% dividend yields for the next couple of years before the increases.

National Australia Bank Ltd (ASX: NAB)

ASX: NAB is part of the big 4 Aussie banks and as we all know, the banks have been performing extremely well in challenging operating conditions. The NAB share price is now trading around levels seen before the pandemic. Increased lending to retail customers and businesses has increased as the government’s stimulus and deregulations around lending have done their bit. The increased lending has offset the low interest rate and NAB shares have been able to perform well. More importantly, dividends are back for the banks, and this has caused investors to become upbeat about the banks once again.

Recently, NAB also announced its intention to buy back up to $2.5 billion of its ordinary shares on-market to progress managing its Common Equity Tier 1 (CET1) towards its target range of 10.75–11.25%. NAB shares have been brought back since earlier this month and the NAB stock has been one of the top-quality blue-chip stocks to consider for some time now.

NAB could be the ideal allocation to increase income in your portfolio in your list of top dividend stocks. Hence, the bank is offering a solid ASX dividend yield of 3.14%. Moreover, the NAB share price is pretty solid as well. The recent broad market pullback could be an opportunity to grab some NAB shares. NAB bank shares are currently trading at $28.79 apiece. Year-to-date NAB is also quite a winner, with its shares appreciated by 27.4% year-to-date.

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