Brokers says these ASX 300 dividend shares are top buys
A couple working on a laptop laugh as they discuss their ASX share portfolio.
There are a lot of ASX 300 dividend shares to choose from on the Australian share market.
To narrow things down for income investors, I have picked out two that brokers have named as top buys recently.
Let's see what they are saying about these shares:
Dexus Industria REITÂ (ASX: DXI)
Over at Morgans, its analysts think that Dexus Industria could be an ASX 300 dividend share to buy this month. It is a real estate investment trust with a focus on industrial warehouses.
The broker believes the industrial property company is well-placed due to solid demand, its development pipeline, and the positive rental growth outlook. It explains:
The portfolio is valued at $1.6bn across +90 properties with 89% of the portfolio weighted towards industrial assets (WACR 5.38%). The portfolio's WALE is around 6 years and occupancy 97.5%. Across the portfolio 50% of leases are linked to CPI with the balance on fixed increases between 3-3.5%. While we expect cap rates to expand further in the near term, DXI's industrial portfolio remains robust with the outlook positive for rental growth. The development pipeline also provides near and medium-term upside potential and post asset sales there is balance sheet capacity to execute.
In respect to income, the broker is forecasting dividends per share of 16.4 cents in FY 2024 and then 16.6 cents in FY 2025. Based on the current Dexus Industria share price of $2.84, this will mean dividend yields of 5.8% and 5.85%, respectively.
Morgans has an add rating and $3.20 price target on its shares.
Rural Funds Group (ASX: RFF)
Analysts at Bell Potter think that Rural Funds could be an ASX 300 dividend share to buy. It is the owner of a portfolio of high-quality agricultural assets. This includes orchards, vineyards, water entitlements, cropping, and cattle farms.
The broker believes that its shares are too cheap at current levels and sees this as a buying opportunity for income investors. It explains:
RFF trades at a historical high discount to its market NAV per unit ($2.78 pu) at ~28%. While we are in general seeing large discounts to NAV in ASX listed farming and water assets to market NAV, the discount that RFF is trading appears excessive and we are seeing a valuable opportunity in RFF. While the timing of that value discount closing is difficult to call, investors are likely to be rewarded with a ~6% yield to hold the position until such a time as the asset class rerates. Furthermore, RFF aims to achieve income growth through productivity improvements, conversion of assets to higher and better use along with rental indexation which is built into all of its contracts with its tenants.
As for dividends, Bell Potter is forecasting dividends per share of 11.7 cents in both FY 2024 and FY 2025. Based on the current Rural Funds share price of $2.00, this will mean yields of 5.85% for investors.
The broker has a buy rating and $2.40 price target on its shares.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Rural Funds Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.