With the interest rates on offer with term deposits falling to such low levels, you would have to invest millions into them to earn a sufficient income.
In light of this, the share market looks set to remain the place to earn a passive income for the foreseeable future.
But which shares should you buy in February? Here are two ASX dividend shares that are rated as buys:
Coles Group Ltd (ASX: COL)
The first ASX dividend share to look at is Coles. It continued its positive form in FY 2020 thanks to a combination of its defensive earnings, its strong market position, and a favourable redirection in consumer spending.
The good news is that this positive form has continued in FY 2021, putting Coles in a position to deliver solid earnings and dividend growth.
According to a note out of Citi, its analysts are expecting a strong result from the supermarket giant.
So much so, the broker has put a buy rating and $21.20 price target on its shares. In addition, its analysts are forecasting a 63.5 cents per share fully franked dividend this year. Based on the latest Coles share price, this represents a fully franked 3.4% dividend yield.
Westpac Banking Corp (ASX: WBC)
If you don’t have exposure to the banking sector, then you might want to take a closer look at Westpac.
With COVID-19 loan deferrals now at comparatively low levels, solid mortgage growth expected in 2021, and responsible lending rules being relaxed, things are looking a lot more positive for Westpac and the rest of the banking sector.
Analysts at Citi are positive on the bank and have named Westpac as their preferred major bank exposure. The broker recently put a buy rating and $26.00 price target on its shares.
And thanks to APRA removing dividend restrictions, it is forecasting a $1.30 per share fully franked dividend this year. Based on the latest Westpac share price, this represents a 6% yield.
Where to 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 more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of June 30th
More reading
- 2 ASX 200 shares to buy for dividends
- ASX 200 Weekly Wrap: Change in America spurs ASX 200 higher
- These ASX shares are falling after being hit by broker downgrades today
- Here’s one party Woolies and Coles will not be attending
- 3 top ASX dividend shares to buy for 2021 and beyond
Motley Fool contributor James Mickleboro owns shares of Westpac Banking. 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.
The post 2 top ASX dividend shares to buy in February appeared first on The Motley Fool Australia.
from The Motley Fool Australia https://ift.tt/2KT1PAi
Leave a Reply