These dividend shares could be top options for income investors…
The post 2 blue chip ASX dividend shares rated as buys appeared first on The Motley Fool Australia. –
This afternoon the Reserve Bank of Australia will meet to decide on the cash rate. According to latest Westpac Banking Corp (ASX: WBC) weekly economic report, the banking giant is expecting the central bank to keep rates on hold at the record low of 0.1%.
In fact, it isn’t just this month that the bank expects this to be the case. Westpac is forecasting rates to stay on hold until at least the end of 2022.
As a result, it looks as though dividend shares will remain the best way to generate a passive income for some time to come. But which ASX dividend shares should you buy? Here are two rated as buys:
Coles Group Ltd (ASX: COL)
This supermarket giant could be a dividend share to consider buying. Thanks to its strong market position, focus on automation, and the normalisation of shopping trends, Coles has been tipped to grow its earnings and dividend at a solid rate in the coming years.
Goldman Sachs currently has a buy rating and $19.40 price target on its shares. It is also forecasting fully franked dividends of 62 cents per share in FY 2021 and then 67 cents per share in FY 2022. Based on the current Coles share price of $16.76, this represents yields of 3.7% and 4%, respectively, over the next two years.
Telstra Corporation Ltd (ASX: TLS)
Another ASX dividend share to look at is Telstra. It has been tipped to provide investors with generous dividends over the coming years. This is being underpinned by its leadership position with 5G, asset monetisation, cost cutting, and rational competition.
Goldman Sachs is also a fan of Telstra. It currently has a buy rating and $4.20 price target on its shares. The broker is forecasting fully franked dividends of 16 cents per share through to FY 2023. After which, it is expecting a long-awaited dividend increase to 18 cents per share in FY 2024.
Based on the current Telstra share price of $3.79, this will mean 4.2% yields until an increase to 4.75%.
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
Is the Westpac (ASX:WBC) share price still good value?
These ASX shares are the latest to be hit by broker downgrades
Motley Fool contributor James Mickleboro owns shares of Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended COLESGROUP DEF SET and Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.