2 buy-rated ASX dividend shares with big fully franked yields

Check out these ASX dividend shares this month…
The post 2 buy-rated ASX dividend shares with big fully franked yields appeared first on The Motley Fool Australia. –

If you’re in the process of building an income portfolio, then you might want to look at the shares listed below.

Here’s why these ASX dividend shares could be in the buy zone right now:

Adairs Ltd (ASX: ADH)

The first ASX dividend share to look at is this leading retailer of homewares and home furnishings.

Adairs has been a fantastic performer over the last 12 months, leading to the recent release of a very strong FY 2021 result. For example, Adairs reported a 28.5% increase in sales to $499.8 million and the almost doubling of its EBIT to $109.1 million.

Analysts at Morgans remain positive on the company. In response to its full year results, the broker has upgraded its shares to an add rating with a $4.20 price target.

Morgans is also expecting generous dividends from the retailer in the next couple of years. It has pencilled in fully franked dividends of 22 cents in FY 2022 and 27 cents in FY 2023.

Based on the current Adairs share price of $4.01, this will mean yields of 5.5% and 6.7%, respectively

Westpac Banking Corp (ASX: WBC)

Another ASX dividend share to consider is Australia’s oldest bank. It has also been a positive performer over the last 12 months after rebounding strongly from the pandemic.

For example, during the first half, Westpac reported cash earnings of $3,537 million. This was a 256% increase over the prior corresponding period and a 119% increase over the second half of FY 2020.

One broker that has been impressed with its recovery is Goldman Sachs. Its analysts currently have a buy rating and $29.93 price target on the bank’s shares.

Goldman is also expecting generous dividends of 116 cents in FY 2021 and 128 cents in FY 2022. Based on the latest Westpac share price of $25.82, this implies yields of 4.5% and 5%, respectively.

In addition, the broker has tipped the bank to return $5 billion to shareholders in the near future due to its surplus capital and franking credits.

The post 2 buy-rated ASX dividend shares with big fully franked yields appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

More reading

Australia’s rising delta recession risk could hit these ASX 200 shares badly

ASX 200 Weekly Wrap: A mixed bag of earnings dominates ASX

How has the Westpac (ASX:WBC) share price performed against the banking sector in August?
2 excellent ASX dividend shares analysts rate as buys

2 blue chip ASX 200 dividend shares named as buys

Motley Fool contributor James Mickleboro owns shares of Westpac Banking Corporation. 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.

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!