Accent Group Ltd (ASX:AX1) and this ASX dividend share could be buys for income investors…
The post 2 ASX dividend shares to buy next week appeared first on Motley Fool Australia. –
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)
The first dividend share to look at is Accent. It is a leading footwear-focused retailer which owns a number of retail store brands such as HYPE DC, Platypus, The Athlete’s Foot, and Sneaker Lab. It has also just launched a couple of new brands, Australian Stylerunner and Pivot. This is part of its store expansion plan, which is aiming to add approximately 80 new stores in FY 2021.
Last week Accent held its annual general meeting and released a trading update. That update revealed that the company’s sales for the first 20 weeks of FY 2021 are well ahead of its expectations. Excluding its Auckland and Victorian stores, Accent’s like for like sales are up 15.7% over the period. Its online sales have been even stronger thanks to the shift to online shopping. It recorded a 129% increase in sales compared to the same period last year.
This update caught the eye of analysts at Citi. In response to its update, its analysts upgraded the retailer’s shares to a buy rating with an improved price target of $2.09. And while its shares have now reached this level, they still offer a generous trailing 4.4% dividend yield.
Bravura Solutions Ltd (ASX: BVS)
Bravura Solutions is a leading provider of software products and services to the wealth management and funds administration industries. It is the company behind the Sonata wealth management platform, the Rufus transfer agency solution, the Midwinter financial planning solution, and the recently acquired Delta Financial Systems.
The Bravura share price has come under pressure this year due to the pandemic and its impact on its performance in FY 2021. Management advised that its earnings could be flat year on year. While this isn’t terrible, all things considered, it’s the 80% weighting to the second half which has investors concerned.
Analysts at Goldman Sachs think investors should accept this short term pain due to the potential for significant long term gains. It believes Bravura is well positioned due to its strong market position, high degree of recurring revenue, and its emerging microservices ecosystem strategy. It has a buy rating and $5.00 price target on its shares. It is also forecasting a ~10.6 cents per share dividend in FY 2021. Based on the current Bravura share price, this represents a 3.2% dividend yield.
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Returns As of 6th October 2020
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Bravura Solutions Ltd. The Motley Fool Australia has recommended Accent Group and Bravura Solutions Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.