If you’re looking for some generous dividends to boost your income next year, then you might want to take a look at the ASX shares listed below.
Here’s why these have been named as dividend shares to buy:
Accent Group Ltd (ASX: AX1)
Accent Group is one of Australia’s leading footwear-focused retailers. It owns a wide range of retail store brands such as HYPE DC, Platypus, and The Athlete’s Foot. It also has a couple of new brands, Australian Stylerunner and Pivot, which have just started to open stores.
Although many retailers have struggled this year because of the pandemic, Accent certainly wasn’t one of them. Thanks to its strong market position, in-demand brands, and its growing online business, in FY 2020 the company posted a 7.5% increase in net profit after tax to $58 million. It also recently revealed like for like sales growth of 15.7% for the first 20 weeks of FY 2021 excluding its Auckland and Victorian stores.
Analysts at Morgan Stanley have an overweight rating on its shares and are forecasting a fully franked 9.4 cents per share dividend in FY 2021. Based on the current Accent share price, this represents a 4.3% dividend yield.
BHP Group Ltd (ASX: BHP)
BHP is one of the globe’s biggest miners and the owner of a collection of world class, low cost assets. Pleasingly, thanks to favourable commodity prices, these operations are generating significant free cash flows at present. And given the company’s track record of returning excess free cash flow to shareholders, this bodes well for dividends in FY 2021.
Late last month analysts at Morgan Stanley retained their overweight rating on its shares. They also revealed that they are forecasting a fully franked ~204 cents per share dividend in FY 2021. Based on the latest BHP share price, this equates to a 5.2% dividend yield.
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Returns As of 6th October 2020
More reading
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- Fund managers are snapping up these ASX stocks at a record pace
- 2 growing ASX dividend shares to buy this month
- How the biggest companies are the worst investments
- ASX 200 Weekly Wrap: ASX 200 on track for a top month
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Accent Group. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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