2 highly rated ASX dividend shares to buy

These dividend shares could be buys…
The post 2 highly rated ASX dividend shares to buy appeared first on The Motley Fool Australia. –

The Australian share market is home to a good number of shares offering attractive dividend yields.

But which ones should you buy over others? Here’s are two that analysts rate highly right now:

Aurizon Holdings Ltd (ASX: AZJ)

The first ASX dividend share to look at is Australia’s largest rail freight operator. It connects miners, primary producers, and industry with international and domestic markets via its extensive national rail and road network.

One leading broker that is positive on the company is Macquarie. Its analysts currently have an outperform rating and $4.32 price target on its shares.

The broker believes Aurizon has ~$1 billion of balance sheet capacity that can be used to drive growth through acquisitions.

In addition, the broker is forecasting very generous dividends in the near term. It has pencilled in partially franked dividends of 28.1 cents per share in FY 2022 and then 29.5 cents per share in FY 2023.

Based on the latest Aurizon share price of $3.90, this will mean yields of 7.2% and 7.6%, respectively.

Coles Group Ltd (ASX: COL)

Another ASX dividend share to look at is Coles. Over the last 107 years, Coles has gone from a single store in Collingwood, Victoria to one of the largest and most recognisable brands in Australia. At the last count, the company was operating over 800 supermarkets, over 900 liquor retail stores, and over 700 Coles express stores.

Looking ahead, the company still has room to grow its network. In addition, Coles is aiming to make its operations more efficient through cost cutting plans and its focus on automation. This includes investing heavily in new distribution centres with automation giant Ocado.

All in all, this is expected to underpin solid growth in earnings and dividends over the long term.

For now, the team at Coles are forecasting a fully franked dividends of 61 cents per share in FY 2022 and then 62 cents per share in FY 2023. Based on the current Coles share price of $16.94, this will mean yields of 3.6% and 3.65%, respectively.

Morgans has an add rating and $19.80 price target on Coles’ shares.

The post 2 highly rated 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

Aurizon (ASX:AZJ) share price lifts following sustainability report
5 things to watch on the ASX 200 on Tuesday

September hasn’t been a great month so far for the Coles (ASX:COL) share price
Woolworths (ASX:WOW) and Coles (ASX:COL) could face a margin shock
Broker tips BHP (ASX:BHP) and this dividend share to provide huge yields

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 no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended COLESGROUP DEF SET. The Motley Fool Australia has recommended Aurizon Holdings 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!