2 quality ASX dividend shares for income investors to buy

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

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Are you looking to boost your portfolio with some dividend shares?

Then you might want to take a look at the ASX dividend shares listed below. Here’s what you need to know about them:

Coles Group Ltd (ASX: COL)

The first ASX dividend share to look at is Coles. This supermarket operator appears well-positioned to deliver a strong result in FY 2021 thanks to favourable consumer spending trends, its strong market position, and defensive qualities.

In fact, Goldman Sachs is expecting Coles to report a 9.2% increase in first half group sales to $20,585.9 million and a 10.5% lift in underlying net profit after tax to $540.4 million next month. This is expected to be driven by strong sales growth across its Supermarkets, Liquor, and Express businesses.

The broker expects this to lead to the Coles board increasing its interim dividend by 13.3% to a fully franked 34 cents per share. Based on the current Coles share price, this equates to a 3.75% dividend yield if annualised. Goldman Sachs has a buy rating and $21.10 price target on Coles shares.

Lendlease Group (ASX: LLC)

Another dividend share that Goldman Sachs is positive on is Lendlease. It is a global property and infrastructure company which is undergoing a major change to its strategy.

This strategy change is shifting its earnings mix and business model and looks to have positioned it perfectly for long term growth. Goldman is a big fan of the new strategy and expects its shares to rerate to higher multiples if it executes it successfully.

The broker has a buy rating and $16.65 price target on the company’s shares and is forecasting a 37.7 cents per share dividend in FY 2021. Based on the current Lendlease share price, this equates to a 3% yield. After which, a yield of 5.2% is expected in FY 2022 by the broker.

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Returns As of 6th October 2020

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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 has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post 2 quality ASX dividend shares for income investors to buy appeared first on The Motley Fool Australia.

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