2 growing ASX dividend shares named as buys

These dividend shares could be in the buy zone…
The post 2 growing ASX dividend shares named as buys appeared first on The Motley Fool Australia. –

Are you looking for some dividend shares to boost your income portfolio? If you are, then you might want to look at the ones listed below.

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

Bravura Solutions Ltd (ASX: BVS)

The first ASX dividend share to look at is this provider of software products and services to the wealth management and funds administration industries.

Bravura is best known for its Sonata wealth management platform, which allows financial advisers to connect and engage with clients via computers or smart devices. However, it also has a number of other businesses supporting its growth. These include the Rufus transfer agency solution, the Garradin back office solution, and the Midwinter financial planning solution.

Bravura has struggled during Brexit and the pandemic, but has started to bounce back. It is for this reason that the team at Goldman Sachs believe its shares could be great value now. According to a recent note, the broker has put a buy rating and $3.70 price target on its shares. It believes the company is well positioned due to its strong market position, high degree of recurring revenue, and its emerging microservices ecosystem strategy.

Goldman is forecasting partially franked dividends per share of 10 cents in FY 2022 and 11 cents in FY 2023. Based on the current Bravura share price of $3.20, this will mean yields of 3.1% and 3.4%, respectively.

Coles Group Ltd (ASX: COL)

Another ASX dividend share to consider is this supermarket, convenience store, and liquor retailer.

It was on form again in FY 2021, delivering a 3.1% increase in revenue to $38,562 million and a 7.5% lift in net profit after tax to $1,005 million.

And while some of the tailwinds from the pandemic are now easing, such as panic buying, the company remains well-positioned for growth over both the short and long term. This is thanks to the normalisation in shopping habits, inflation, its strong market position, cost cutting, and store expansion opportunities.

Morgans is very positive on the company’s outlook. It currently has an add rating and $19.80 price target on Coles’ shares. It is also forecasting dividends per share of 61 cents in FY 2022 and 62 cents in FY 2023.

Based on the current Coles share price of $17.06, this implies fully franked yields of 3.55% and 3.6%, respectively.

The post 2 growing ASX dividend shares named as buys appeared first on The Motley Fool Australia.

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More reading

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2 excellent ASX dividend shares named as buys

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Why this broker sees the Coles (ASX:COL) share price rising 15%

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 Bravura Solutions Ltd. The Motley Fool Australia owns shares of and has recommended Bravura Solutions Ltd and COLESGROUP DEF SET. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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