Fortescue Metals Group Limited (ASX:FMG) and this ASX dividend share could help boost your income. Here’s how…
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Are you looking to buy some dividend shares next week? Then listed below are two shares that might be worth considering.
Here’s why they are being tipped as dividend shares to buy:
Accent Group Ltd (ASX: AX1)
Accent could be a dividend share to buy. It is the leading leisure footwear retailer behind popular retail store brands such as HYPEDC, The Athlete’s Foot, and Platypus.
It was a strong performer in FY 2020 and has carried over this positive form into the current financial year. Accent recently revealed first half like for like sales growth of 12.3% excluding stores closures.
Analysts at Citi are positive on the company. In response to its update, the broker put a buy rating and $2.60 price target on its shares.
Furthermore, Citi is forecasting the company to pay an 11 cents per share dividend in FY 2021. Based on the current Accent share price, this represents a fully franked 4.85% dividend yield.
Fortescue Metals Group Limited (ASX: FMG)
Another ASX dividend share to look at is Fortescue. Over the last few years this mining giant’s shares have generated mouthwatering returns for shareholders.
This has been driven by improving grades, cost reductions, production and shipment growth, and favourable iron ore prices.
In respect to the latter, the spot iron ore price was fetching ~US$160 a tonne last week. This compares very favourably to Fortescue’s current C1 costs of US$12.74 per wet metric tonne.
As a result, the company is expected to deliver very strong cash flow generation and bumper dividends for investors in FY 2021.
One broker that is forecasting big dividends is Macquarie. It expects the company to reward shareholders with a fully franked interim dividend of $1.37 per share this month.
Based on the current Fortescue share price, this interim dividend alone represents a yield of 5.75%.
For the full year, the broker estimates that its shares offer an ~8.5% yield.
Unsurprisingly with such a generous yield, Macquarie rates Fortescue as a buy. It has an outperform rating and $26.50 price target on its shares.
Where to invest $1,000 right now
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Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Accent Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.