Insights

Why analysts are bullish on these 2 ASX dividend shares

Here are two buy-rated dividend shares…
The post Why analysts are bullish on these 2 ASX dividend shares appeared first on The Motley Fool Australia. –

There are a lot of dividend options for investors to choose from on the Australian share market. To narrow things down, listed below are two dividend shares that are highly rated right now.

Here’s what analysts are saying about these ASX dividend shares:

Adairs Ltd (ASX: ADH)

This furniture and homewares retailer’s shares have come under significant pressure this year due to its disappointing performance during the first half caused by COVID lockdowns.

However, the team at Morgans has told investors that now is not time to throw in the towel. While disappointed with its first half performance, it believes the selling of the Adairs share price was overdone and has created a buying opportunity.

Morgans commented: “Today’s trading update was a disappointment and has led us to lower expectations for full year earnings. The share price reaction to the statement was, however, greater than we had thought appropriate.”

The broker has an add rating and $3.70 price target on its shares. This compares to the latest Adairs share price of $3.03. And with Morgans forecasting fully franked dividends of 19 cents per share in FY 2022 and 26 cents per share in FY 2023, this will mean yields of 6.3% and 8.6%, respectively.

Premier Investments Limited (ASX: PMV)

The team at Bell Potter believe this retail conglomerate’s shares could be a good option for income investors. Particularly given its strong performance during the first half of FY 2022 despite losing 42,000 trading days to COVID lockdowns.

In response to its better than expected update, Bell Potter retained its buy rating and lifted its price target to $32.00. Pleasingly, the broker appears confident its positive form can continue.

It commented: “PMV has been an outperformer throughout COVID-19, demonstrating resilient sales performance underpinned by market leading omni-channel capabilities that leverage off a wholly owned DC. We see several key positive catalysts over the next 12-24 mths including the continued rebound in Smiggle, the potential launch of Peter Alexander in new offshore markets, plus M&A opportunities. We retain our Buy rating on the stock.”

Bell Potter estimates that its shares will provide 3% and 3.1% fully franked dividend yields in FY 2022 and FY 2023, respectively.

The post Why analysts are bullish on these 2 ASX dividend shares appeared first on The Motley Fool Australia.

Wondering where you should 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 over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of January 12th 2022

More reading

Brokers name 3 ASX shares to buy today

5 things to watch on the ASX 200 on Friday

Top brokers name 3 ASX shares to sell today

Why Beach, Jumbo, Premier Investments, and Western Areas are pushing higher

ASX 200 (ASX:XJO) midday update: Premier impresses but Kogan disappoints again

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended ADAIRS FPO. The Motley Fool Australia owns and has recommended ADAIRS FPO. The Motley Fool Australia has recommended Premier Investments Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

  • This field is for validation purposes and should be left unchanged.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US & HK* Trades. Click Here!