Income investors may want to check out these dividend shares…
The post 2 buy-rated ASX dividend shares for income investors appeared first on The Motley Fool Australia. –
Are you interested in boosting your income portfolio with some new additions? Then below are two options to consider.
Here’s why these ASX dividend shares have been rated as buys:
Adairs Ltd (ASX: ADH)
The first ASX dividend share to look at is Adairs. It is a leading retailer of homewares and home furnishings in Australia and New Zealand through both retail stores and online channels.
It has been in fine form in FY 2021 thanks to heightened sales during the pandemic. And while it will be very hard for Adairs to outperform this in FY 2022, it has been tipped by Goldman Sachs to resume its growth again in FY 2023.
This is due to its strong market position and omni-channel footprint, which the broker notes gives it exposure to both online and in-store growth. In addition to this, Goldman sees upside potential in Adairs’ average order value compared with peers in the home category.
The broker currently has a buy rating and $4.80 price target on its shares. It is also forecasting fully franked dividends per share of 26 cents in FY 2021, 25.1 cents in FY 2022, and then 26.8 cents in FY 2023. Based on the current Adairs share price of $4.07, this will mean yields of 6.4%, 6.15%, and 6.6%, respectively.
Australia and New Zealand Banking GrpLtd (ASX: ANZ)
Another ASX dividend share to look at is ANZ. It could be a top option due to its increasingly positive outlook thanks to improving trading conditions and cost reductions. The latter sees ANZ aiming to reduce its cost base significantly to $8 billion in the near future.
This, combined with its very strong capital position, is expected to underpin generous dividends and share buybacks in the coming years.
In respect to dividends, the team at Morgans is forecasting fully franked dividends of 145 cents per share in FY 2021 and then 165 cents per share in FY 2022. Based on the latest ANZ share price of $29.53, this represents yields of 4.9% and 5.6%, respectively. Its analysts currently have an add rating and $34.50 price target on ANZ’s shares.
The post 2 buy-rated ASX dividend shares for income investors appeared first on The Motley Fool Australia.
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Returns As of 15th February 2021
Analysts name ANZ (ASX:ANZ) and this dividend share as buys
2 high yield ASX dividend shares analysts rate as buys
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ADAIRS FPO. The Motley Fool Australia owns shares of and has recommended ADAIRS FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.