Buy BHP and this ASX dividend share with a 10% yield

MotleyFool
昨天

Are you on the lookout for ASX dividend shares to buy? If you are, it could be worth checking out the two listed below.

That's because analysts are bullish on them both and expect attractive dividend yields in the near term.

Here's what they are saying about these income options this month:

BHP Group Ltd (ASX: BHP)

Analysts at Goldman Sachs think that mining giant BHP could be an ASX dividend share to buy right now.

The broker likes the Big Australian due largely to its exposure to copper. It believes this commodity will become a major contributor to earnings in the coming years. It explains:

We remain bullish on copper due to ongoing supply side challenges and increasing demand, and expect BHP's copper EBITDA to increase by ~US$5bn to ~US$13bn by FY26 (~45% of group EBITDA). Under our base case, copper EBITDA is expected to reach ~US$17bn by FY35, at GSe long run copper of ~US$4.6/lb (real $, from 2028).

Goldman expects this to underpin fully franked dividends per share of 100 US cents (A$1.57) in FY 2025 and then 93 US cents (A$1.46) in FY 2026. Based on the current BHP share price of $38.40, this equates to fully franked dividend yields of 4.1% and 3.8%, respectively.

Goldman has a buy rating and $45.10 price target. This implies potential upside of over 17% for investors over the next 12 months.

GQG Partners Inc (ASX: GQG)

A second ASX dividend share that analysts think could be a top buy is GQG Partners.

It is a global investment company that is managing funds on behalf of large pension funds, sovereign funds, wealth management firms, and financial institutions.

Macquarie is a fan of the company and believes its shares are undervalued at current levels. Particularly given its generous dividend yields. It said:

FY25/26/27E EPS estimates move +3.3%/+5.1%/+5.1% to reflect changes in flows, performance and market movements. Outperform. At <9x NTM P/E with a >10% yield, valuation remains attractive.

As for income, Macquarie is forecasting dividends per share of 14.7 US cents (23.1 Australian cents) in FY 2025 and then 16 US cents (25.1 Australian cents) in FY 2026. Based on its current share price of $2.44, this would mean dividend yields of 9.5% and 10.3%, respectively.

Macquarie has a buy rating and $2.90 price target on its shares. This suggests that upside of 19% is possible from current levels.

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