Coles Group Ltd (ASX:COL) and these ASX dividend shares could be top options for income investors today…
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If you’re on the lookout for some dividend shares to add to your portfolio, then you might want to take a closer look at the ones listed below.
Here’s why they are being rated as shares to buy right now:
Bravura Solutions Ltd (ASX: BVS)
Although this leading wealth management and transfer agency software solution provider isn’t normally regarded as a dividend share, a significant decline in its share price means it has become one. That decline has been driven by concerns over its performance in FY 2021 due to COVID and Brexit headwinds. Management has warned that the majority of its earnings will be generated in the second half.
One broker that remains very positive on the company’s future and sees this share price weakness as a buying opportunity is Goldman Sachs. It recently put a buy rating and $4.50 price target on its shares. The broker is also forecasting a 10.6 cents per share dividend in FY 2021. Based on the current Bravura share price, this represents a 3.1% dividend yield.
Coles Group Ltd (ASX: COL)
Unlike Bravura, this supermarket operator has been performing very positively this year and has seen its share price surge higher. The company delivered a 6.9% increase in sales to $37.4 billion in FY 2020 and has followed this up with further strong growth in the first quarter of FY 2021. During the three months that ended 30 September, Coles reported an impressive 10.5% increase in total sales over the prior corresponding period to $9.6 billion.
Goldman Sachs is also very positive on Coles and was pleased with its performance in the first quarter. In light of its positive form, the broker is forecasting a fully franked 64 cents per share dividend in FY 2021. Based on the current Coles share price, this equates to a 3.5% dividend yield. Goldman has a buy rating and $20.50 price target on its shares.
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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 and has recommended Bravura Solutions Ltd. 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.