Insights

2 buy-rated ASX dividend shares with big yields

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

Are you looking for dividend shares to buy next week? If you are, then you may want to look at the two listed below.

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

Adairs Ltd (ASX: ADH)

The first ASX dividend share to look at is this leading retailer of homewares and home furnishings. Adairs has a growing network of stores across Australia and New Zealand and a strong online presence through both its core brand and the Mocka brand.

Thanks to a thriving housing market and a favourable redirection in consumer spending during the pandemic, Adairs reported strong sales and profit growth in FY 2021. And while lockdowns will make it hard to top this in FY 2022, the company’s longer term outlook remains very positive.

In the meantime, the team at Morgans are still expecting Adairs’ shares to provide very generous dividend yields in FY 2022 and FY 2023.

Its analysts have pencilled in fully franked dividends per share of 22 cents and 27 cents for the two financial years. Based on the current Adairs share price of $3.84, this will mean yields of 5.7% and 7%, respectively.

Morgans has an add rating and $4.20 price target on the company’s shares.

BHP Group Ltd (ASX: BHP)

Another ASX dividend share to look at is BHP. It could be a top option for income investors, especially after recent and significant weakness in the BHP share price.

That weakness has been driven by a sharp pullback in the iron ore price. However, while the iron ore price weakness is disappointing (but not unexpected), other commodities such as coal have been booming.

It is because of this that the team at Macquarie remains very bullish on BHP. In fact, the broker estimates that BHP’s shares are trading on a free cash flow yield of ~20% despite the iron ore price weakness.

This strong free cash flow is expected to underpin fully franked dividends of $3.97 per share in FY 2022 and $2.88 per share in FY 2023. Based on the current BHP share price of $37.74, this will mean yields of 10.5% and 7.6%, respectively.

Macquarie has an outperform rating and $56.00 price target on the mining giant’s shares.

The post 2 buy-rated ASX dividend shares with big 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

Own BHP (ASX:BHP) shares? Here’s why the miner won’t be jumping onboard the hydrogen train
Brokers name 3 ASX shares to buy today

Here’s why the Rio Tinto (ASX:RIO), BHP and Fortescue share prices are surging today
Why do Pilbara Minerals (ASX:PLS) shares keep topping the volume charts?
US warns Evergrande crisis could affect ‘entire world’

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. owns shares of and 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!