Kogan.com Ltd (ASX:KGN) and this ASX dividend share could be top options for income investors right now. Here’s what you need to know…
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With interest rates likely to remain low for some time to come, the dividend shares listed below could be top options for anyone seeking a passive income stream. This is especially the case for those looking for long term options.
Here’s why these ASX dividend shares are rated as buys right now:
Coles Group Ltd (ASX: COL)
The first ASX dividend share for income investors to consider is Coles. The supermarket operator could be a top option due to its positive long term growth outlook and favourable dividend policy.
One broker that believes the company is well-placed to grow its dividend over the long term is Goldman Sachs.
Its analysts are forecasting dividends per share of 62 cents in FY 2021 and 66 cents in FY 2022. Based on the current Coles share price of $16.35, this will mean fully franked yields of 3.8% and 4.1%, respectively, over the next two years.
Goldman also sees meaningful upside for the Coles share price over the next 12 months. Its analysts have put a buy rating and $20.50 price target on its shares.
Kogan.com Ltd (ASX: KGN)
Another ASX dividend share to consider is Kogan. With this ecommerce company’s shares falling heavily in recent months, they are now trading at a level that could make them an option for income investors.
For example, analysts at Credit Suisse are currently forecasting Kogan to pay dividends of ~25.4 cents per share and ~29.4 cents per share in FY 2021 and FY 2022, respectively.
Based on the current Kogan share price of $10.12, which is down a massive 60% from its high, this will mean fully franked dividend yields of 2.5% and 2.9% over the next couple of years.
Credit Suisse has an outperform rating and $17.93 price target on its shares. This implies almost 80% upside over the next 12 months for investors.
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Returns As of 15th February 2021
- 2 fast-growth ASX tech shares that are being sold off
- 2 ASX dividend shares to buy with yields above 4%
- 2 beaten down ASX shares rated as buys
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd. The Motley Fool Australia owns shares of COLESGROUP DEF SET. The Motley Fool Australia has recommended Kogan.com ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.