Here’s why Coles Group Ltd (ASX:COL) and this ASX dividend share could be quality options for income investors right now…
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Are you looking to boost your income portfolio with some quality ASX dividend shares? Then you might want to consider the ones listed below.
Here’s what you need to know about these ASX dividend shares:
Accent Group Ltd (ASX: AX1)
The name Accent may not be familiar, but I bet readers will know many of this footwear retailer’s store brands. Accent is the company behind the likes of HYPEDC, Platypus, Sneaker Lab, Stylerunner, and The Athlete’s Foot.
Its stores and their online businesses have been booming over the last 12 months despite the pandemic. This culminated in Accent delivering a strong half year result last month. It revealed a 6.6% increase in total sales to $541.3 million and a massive 57.3% lift in net profit after tax to $52.8 million.
The good news is that the second half started strongly, putting Accent in a position to deliver a bumper full year profit result in August.
Analysts at Bell Potter are positive on the company and have a buy rating and $2.65 price target on its shares. The broker is also forecasting an 11.9 cents per share dividend in FY 2021. Based on the current Accent share price, this will mean a fully franked 5.1% yield.
Coles Group Ltd (ASX: COL)
Another company that has been performing very strongly over the last 12 months is Coles. The supermarket operator has benefited greatly from a shift in consumer behaviour caused by the pandemic.
However, with the company now cycling the elevated sales period from a year earlier, its second half performance is not expected to be as strong as the first. In fact, management has even warned that sales could decline during the half. This has put pressure on the Coles share price, bringing it down to a level which many brokers believe is very attractive.
One of those is Goldman Sachs. Its analysts have a buy rating and $20.70 price target on its shares currently. The broker remains positive on its medium term outlook thanks to its strong market position, Refreshed Strategy, and focus on automation.
Goldman is forecasting a 62 cents per share dividend in FY 2021. Based on the current Coles share price, this represents a fully franked 4% yield.
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Returns As of 15th February 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. 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.