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Investors seeking reliable passive income from ASX dividend shares in December might find two promising options worth considering. These stocks have been identified as potential buys, offering attractive future yields and upside potential.
- Charter Hall Retail REIT (ASX: CQR)
- Business Profile: Charter Hall Retail REIT operates as a property company with a strategic focus on supermarket-anchored neighbourhood and sub-regional shopping centres across Australia.
- Broker Recommendation: Citi, a prominent financial institution, holds a positive outlook for Charter Hall Retail REIT. The broker underscores the company's defensive net property income growth, particularly in the face of a rising interest rate environment.
- Dividend Outlook: Citi's assessment points toward Charter Hall Retail being well-positioned to distribute dividends per share of 26 cents in FY 2024 and 27 cents in FY 2025. These projections translate to generous dividend yields of 8.1% and 8.4%, respectively, offering an attractive income stream for investors.
- Valuation and Target Price: Citi maintains a buy rating on Charter Hall Retail REIT shares and has set a target price of $4.10, suggesting potential capital appreciation along with the robust dividend yield.
- Westpac Banking Corp (ASX: WBC)
- Business Profile: Westpac is one of Australia's prominent big four banks, providing a wide range of financial services.
- Broker Recommendation: Ord Minnett, a leading financial institution, identifies Westpac as an ASX dividend share with significant potential. The bank's exposure to long-term structural growth, particularly in infrastructure and renewables, contributes to its appeal.
- Dividend Yield: Westpac is expected to reward shareholders with fully franked dividends of 145 cents per share in FY 2024 and 151 cents per share in FY 2025, based on Ord Minnett's projections. With the current Westpac share price at $21.37, this implies attractive dividend yields of 6.8% and 7%, respectively.
- Valuation and Target Price: Ord Minnett maintains an accumulate rating on Westpac shares and has set a target price of $28.00, reflecting the bank's potential for both capital growth and robust dividend payments.
- Woodside Energy Group Ltd (ASX:WDS)
- Business Profile: Woodside Energy is a significant player in the energy sector, involved in various aspects of oil and gas exploration, production, and development.
- Broker Recommendation: Goldman Sachs, a global financial leader, sees long-term value in Woodside Energy, presenting it as an ASX dividend share with potential benefits for investors.
- Dividend Outlook: Goldman Sachs anticipates Woodside Energy paying fully franked dividends of US$1.20 per share in FY 2023 and US$1.27 per share in FY 2024. Considering the current Woodside share price of $31.00, these projections indicate dividend yields of 5.9% and 6.2%, providing an attractive income proposition.
- Valuation and Target Price: Goldman Sachs issues a buy rating on Woodside Energy shares, coupled with a target price of $36.30, reflecting the potential for capital appreciation along with robust dividend yields.
In conclusion, as investors explore opportunities for passive income, careful consideration of individual financial goals and thorough research is essential before making investment decisions. The highlighted ASX dividend shares present compelling income potential and may align with the income-focused objectives of certain investors.
