2 ASX dividend shares analysts rate as buys

Coles Group Ltd (ASX:COL) and this ASX dividend share have been given buy ratings. Here’s what you have to know about them…
The post 2 ASX dividend shares analysts rate as buys appeared first on The Motley Fool Australia. –

With interest rates likely to remain low for some time to come, the dividend shares listed below could be top options for anyone seeking a passive income stream.

Here’s why these dividend shares are rated as buys:

Coles Group Ltd (ASX: COL)

The first option for income investors to consider is Coles. This supermarket operator could be a good option due to its solid business model and very positive long term growth outlook.

And while its growth may be limited in the immediate term due to elevated sales in the prior corresponding period, this short term headwind will soon ease and then Coles has been tipped to resume its growth. This should lead to growing dividends over the coming years.

Goldman Sachs expects this to be the case and is forecasting dividends per share of 62 cents in FY 2021 and then 66 cents in FY 2022. Based on the current Coles share price of $16.60, this will mean fully franked yields of 3.7% and 4%, respectively, over the next two years.

The broker has a buy rating and $20.50 price target on the company’s shares.

Westpac Banking Corp (ASX: WBC)

Another option for income investors to look at is Westpac. This banking giant has returned to form quickly from the pandemic.

For example, for the six months ended 31 March, Westpac reported cash earnings of $3,537 million. This was a 256% increase over the prior corresponding period and a 119% lift over the second half of FY 2020.

This strong form meant the Westpac board was able to declare a fully franked interim dividend of 58 cents per share.

One broker that has been pleased with its recovery and is expecting more of the same in the near term is Morgan Stanley. It recently put an overweight rating and $29.20 price target on the bank’s shares.

Morgan Stanley is expecting Westpac to pay fully franked dividends per share of $1.18 and $1.25 over the next two years. Based on the latest Westpac share price of $25.65, this will mean yields of 4.6% and 4.9%.

These Dividend Stocks Could Be Your Next Cash Kings (FREE REPORT)

Motley Fool Australia’s Dividend experts recently released a brand-new FREE report revealing 3 dividend stocks with JUICY franked dividends that could keep paying you meaty dividends for years to come.

Our team of investors think these 3 dividend stocks should be a ‘must consider’ for any savvy dividend investor. But more importantly, could potentially make Australian investors a heap of passive income.

Don’t miss out! Simply click the link below to grab your free copy and discover these 3 high conviction stocks now.

Returns As of 15th February 2021

More reading

The ANZ (ASX:ANZ) share price leads the ASX 200 banks this week
2 ASX dividend shares that could offer yields of 5% or more today

Consumer sentiment is down 5% this month: Westpac

ASX bank shares primed for dividend bonanza

2 high quality ASX shares for your retirement portfolio

The post 2 ASX dividend shares analysts rate as buys appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!