3 Top High Rated ASX Dividend Stocks To Buy
The ASX 200 was 73.80 points or 0.98% to $7,492 lower in Thursday’s deals, extending losses of 0.32% in yesterday’s session. Investors retreated from risky assets following the latest Federal Reserve minutes. The Fed reported that they may raise interest rates sooner than expected and cut bond holdings to curb rising inflation.
Our List of ASX Dividend Stocks Of 2022
Are you looking for dividend shares to add to your income portfolio in January? If you are, then the three listed below could be the top options.
DEXUS Property Group (ASX: DXS)
The first ASX dividend share to look at is Dexus. It is an Australian real estate company focused on office, industrial and retail properties.
Most Dexus’ earnings are generated from the rental income received from its directly owned Australian property portfolio. Thus, 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 has also recently added to its high-quality portfolio through the acquisition of $1.5 billion worth of industrial assets. These assets include Jandakot Airport in Perth and a logistics centre leased to Australia Post.
Analysts are positive about the company and most of them have an outperform rating. We forecast Dexus to reach in the mid-term $11.93 per share. Furthermore, we expect dividends per share to be at least 53.7 cents in FY22 and 57.5 cents in FY23. Based on the current Dexus share price of $10.91, this will mean yields of 4.53% and 5.2%, respectively.
Australia & New Zealand Banking Group Limited (ASX: ANZ)
Another dividend share to look at is ANZ. The Australia and New Zealand Banking Group share price had a great run over 2021. Hence, ANZ beat the broader market’s performance by 8.1% last year, driven by a particularly good start.
At the end of 2020, the banking giant share price was trading for $22.70. And then, come the final session of 2021, it closed at $27.51, leaving it with a 21.1% gain for the 12 months. For context, the ASX 200 Index gained 13% in the same period.
Let’s look at what drove the bank’s share price last year and see how it will perform in 2022.
The ANZ share price gained 24% over the first three months of 2021. Although, the market didn’t hear price-sensitive news from ANZ in 2021 until mid-February. Then, the bank announced it clocked $1.8 billion of unaudited cash earnings for the first quarter of FY21. That represented an impressive 54% jump on the average quarterly profit of the second half of FY20.
ANZ strong performance continued in May when the bank announced its results for the 6 months ended 31 March. The period saw ANZ besting analyst expectations to report a $2.9 billion statutory NPAT and $2.9 billion of cash earnings from continuing operations. The bank also announced a 70 cent, fully franked, interim dividend. However, despite the good news, the market expected more from ANZ and its stock tumbled 3.2% lower.
Later in the year, ANZ reported another cash earnings increased by 65% to approximately $6.2 billion. Moreover, the bank announced a final fully franked dividend of 72 cents per share.
Overall, 2021 was an exciting year for the ANZ share price. The bank exhibits a solid dividend policy and as of today, it offers a robust 5.06% annual yield.
Woodside Petroleum (ASX: WPL)
Woodside Petroleum is the largest operator of oil and gas production in Australia. It is also Australia’s largest independent dedicated oil and gas company.
We believe this energy producer could be one of the top dividend shares to buy now. Particularly given its impending merger with the petroleum assets of BHP (ASX: BHP). Thus, the deal could be transformative for Woodside in a positive way.
Most analysts have recently added a buy rating with a price target of around $30 per share. Given WPL current share price of $22.21, it is a 35% upside potential.
Furthermore, regarding the merger, from an economic standpoint, we think WPL is clearly getting the better of the deal. Hence, the deal is transformative, lifting WPL into being a top 10 global E&P with +2 billion barrels of 2P reserves.
We expect fully franked dividends of $1.21 per share in FY22 and then $1.06 per share in FY23. Based on the current Woodside share price of $22.21, this will mean lucrative yields of circa 5%.