2 of the best ASX dividend shares to buy

Coles Group Ltd (ASX:COL) and this ASX dividend share could be the ones for income investors to buy right now. Here’s why…
The post 2 of the best ASX dividend shares to buy appeared first on The Motley Fool Australia. –

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Are you looking to add some new faces to your income portfolio this week? If you are, then you might want to look at the ASX dividend shares listed below.

Here’s what you need to know about them:

Coles Group Ltd (ASX: COL)

This supermarket operator could be a top option for income investors right now. This is due to Coles’ strong market position, defensive qualities, and its attractive valuation and yield.

And while the second half of FY 2021 could be mildly disappointing due to the fact it is now cycling the elevated sales period from a year earlier, Coles’ longer term outlook remains very positive. This is thanks to its focus on automation, growing own label sales, and its transformational strategy.

Goldman Sachs is very positive on the company’s prospects. It currently has a buy rating and $20.70 price target on its shares. Goldman is also forecasting a 62 cents per share dividend in FY 2021. Based on the current Coles share price, this represents a fully franked 4% yield.

Wesfarmers Ltd (ASX: WES)

Another option to consider is Coles’ former parent, Wesfarmers. This conglomerate has been performing very positively in FY 2021.

This has been driven by solid performances across its portfolio but particularly from the Bunnings business. The hardware giant has been benefiting from home improvement-related government stimulus and the booming housing market.

Its strong performance underpinned a 16.6% increase in Wesfarmers’ first half revenue to $17,774 million and a 25.5% jump in net profit after tax to $1,414 million.

Goldman Sachs is also a fan of Wesfarmers and currently has a buy rating and $59.70 price target on its shares.

In addition, the broker is forecasting a fully franked dividend of $1.88 per share in FY 2021. Based on the latest Wesfarmers share price, this represents an attractive 3.4% yield.

Where to 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 are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET and Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post 2 of the best ASX dividend shares to buy appeared first on The Motley Fool Australia.

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