Insights

2 high quality and high yielding ASX dividend shares to buy

These buy-rated dividend shares offer generous yields…
The post 2 high quality and high yielding ASX dividend shares to buy appeared first on The Motley Fool Australia. –

If you’re building an income portfolio, then you may want to look at the buy-rated dividend shares listed below.

Here’s why these ASX dividend shares could be worth considering right now:

Adairs Ltd (ASX: ADH)

The first ASX dividend share to look at is Adairs. This leading retailer of homewares and home furnishings could be a good option due to its strong market position, growing online businesses, and generous yield.

In respect to the former, the company’s strong market position allowed it to take full advantage of favourable trading conditions in FY 2021. This led to the company reporting a 28.5% increase in sales to $499.8 million and the almost doubling of its EBIT to $109.1 million.

This went down well with analysts at Morgans. In response, the broker put an add rating and $4.20 price target on the company’s shares.

Looking ahead, Morgans is confident in its medium term outlook and is forecasting dividends per share of 22 cents in FY 2022 and 27 cents in FY 2023. Based on the current Adairs share price of $3.86, this will mean yields of 5.7% and 7%, respectively.

Telstra Corporation Ltd (ASX: TLS)

Another ASX dividend share to consider is Telstra. After several years of struggles, this telco giant is now on the path to growth again. This was confirmed last week when the company released its T25 update. This is Telstra’s new strategy that will build on the highly successful T22 strategy from next year.

Telstra revealed that it will aim for sustained growth and value by targeting mid-single digit underlying EBITDA and high-teen underlying earnings per share compound annual growth rates (CAGR) from FY 2021 to FY 2025.

This went down well with analysts at Goldman Sachs. The broker believes the strategy will support a return to dividend growth in the coming years.

Goldman is now forecasting 16 cents per share fully franked dividends through to FY 2023. After which, it expects a dividend of 18 cents per share in FY 2024 and then 19 cents per share in FY 2025.

Based on the current Telstra share price of $3.88, this will mean yields of 4.1%, 4.6%, and 4.9%, respectively.

Goldman has a buy rating and $4.40 price target on its shares.

The post 2 high quality and high yielding ASX dividend shares to buy 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

Zoom2u (ASX:Z2U) share price soars 19% amid Telstra contract news
Why Adore Beauty, ALE Property, Ausnet, & Zoom2u shares are charging higher

Why the Telstra (ASX:TLS) share price is outperforming the ASX 200 today
2 top ASX dividend shares to think about

Top brokers name 3 ASX shares to buy next week

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 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.

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!