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Why analysts rate Westpac (ASX:WBC) and this dividend share as buys

These could be dividend shares to buy according to analysts..
The post Why analysts rate Westpac (ASX:WBC) and this dividend share as buys appeared first on The Motley Fool Australia. –

If you’re on the lookout for dividend shares to buy, then you may wish to look at the ones listed below.

Here’s why analysts rate these ASX shares highly and are expecting generous yields ahead for investors:

Accent Group Ltd (ASX: AX1)

The first ASX dividend share to look at is this retail conglomerate. Accent has a focus on the leisure footwear market and has a growing stable of brands such as HYPEDC, Platypus, Sneaker Lab, and The Athlete’s Foot.

Thanks to favourable consumer spending trends, its growing store network, and strong business model, the company has been tipped to continue growing its earnings and dividend at a solid rate in the future.

Bell Potter is very positive on the company’s outlook and currently has a buy rating and $3.30 price target on its shares. It is also forecasting dividends of 11.7 cents per share in FY 2021 and then 12.3 cents per share in FY 2022. Based on the current Accent share price of $2.75, this will mean fully franked yields of 4.25% and 4.5%, respectively.

Commenting on Accent’s recent acquisition of Glue Store, its analysts said: “The acquisition of Glue Store will accelerate AX1’s growth in the fragmented youth apparel market. Glue Store strongly complements AX1’s existing banners in youth footwear and significantly expands AX1’s addressable market beyond footwear.”

Westpac Banking Corp (ASX: WBC)

This banking giant has been tipped as a dividend share to buy over at Citi. Its analysts have put a buy rating and $29.50 price target on its shares, making it the only big four bank that Citi is recommending at present.

The broker is forecasting fully franked dividends of 116 cents per share this year and the 118 cents per share in FY 2022. Based on the latest Westpac share price, this represents yields of 4.5% and 4.6%, respectively, over the next two years.

Citi revealed that it likes Westpac due to its improving outlook and the potential for earnings upgrades over the coming years. Especially given its bold cost reduction plans.

The broker said: “The premise of multi-year core earnings upgrades, layered on sector-wide asset quality improvements, leave WBC with a differentiated investment thesis. It remains our sole Buy in a sector that has rallied strongly in the COVID recovery.”

The post Why analysts rate Westpac (ASX:WBC) and this dividend share as buys appeared first on The Motley Fool Australia.

Should you invest $1,000 in Westpac right now?

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More reading

Bank of Queensland shares outperforming all ASX 200 banks this month

Westpac’s (ASX:WBC) double life insurance divestment looms
Westpac (ASX:WBC) share price dips following vehicle finance sale
ASX 200 Weekly Wrap: Share market breaks 5 week winning streak

Top brokers name 3 ASX shares to buy next week

Motley Fool contributor James Mickleboro owns shares of Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. 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.

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