2 on form ASX dividend shares to buy

Coles Group Ltd (ASX:COL) and this on form ASX dividend share could be great options for income investors…
The post 2 on form ASX dividend shares to buy appeared first on The Motley Fool Australia. –

asx dividend shares represented by tree made entirely of money

On Tuesday the Reserve Bank of Australia will meet for the first time this year and has been tipped to take the cash rate down to zero.

If this were to happen, it would put pressure on the banks to trim the interest rates on offer with savings accounts and term deposits once again.

But don’t worry, because these ASX dividend shares have been rated as buys:

Accent Group Ltd (ASX: AX1)

The first ASX dividend share to look at is Accent. It is a leading leisure footwear-focused retailer that owns a number of popular retail store brands. These include HYPEDC, The Athlete’s Foot, and Platypus.

It was a strong performer in FY 2020 and, pleasingly, this positive form has carried over into the current financial year. It recently revealed first half like for like sales growth of 12.3% excluding stores closures.

Analysts at Citi were pleased with this update. In response to it, the broker put a buy rating and $2.60 price target on its shares. In addition to this, Citi is forecasting the company to pay an 11 cents per share dividend in FY 2021. Based on the current Accent share price, this represents a fully franked 4.75% dividend yield.

Coles Group Ltd (ASX: COL)

Another ASX dividend share to look at is Coles. Like Accent, it was a strong performer in FY 2020 and has carried this form over into the new financial year. This is being driven by its defensive earnings, strong market position, and a favourable redirection in consumer spending.

Analysts at Citi have also been impressed with its performance and are expecting the supermarket giant to deliver a strong full year result in FY 2021.

In light of this, the broker has a buy rating and $21.20 price target on its shares. Citi is forecasting a 63.5 cents per share fully franked dividend this year. Based on the latest Coles share price, this represents an attractive 3.5% dividend yield.

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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. The Motley Fool Australia has recommended Accent Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post 2 on form ASX dividend shares to buy appeared first on The Motley Fool Australia.

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