Brokers rate these ASX dividend shares as buys

Are you looking for dividend shares to add to your income portfolio? If you are, then the two listed below could be worth considering.

These dividend shares have been rated as buys by brokers and tipped to provide income investors with attractive yields. Here’s what you need to know about them:

Baby Bunting Group Ltd (ASX: BBN)

The first ASX dividend share to consider is leading baby products retailer, Baby Bunting.

While the retail sector is a tough place to be right now due to supply chain issues and cost of living pressures, Baby Bunting should be less impacted than most. This is due to its leadership position in a less discretionary category which benefits from ~300,000 births a year.

Citi is particularly bullish on Baby Bunting and currently has a buy rating and $6.22 price target on its shares. The broker commented: “[W]e forecast a FY21 to FY24 EPS CAGR of 17%, and see growth being driven by i) rollout, ii) ramp up of new stores, iii) margin expansion and iv) penetrating existing categories with low presence. Further, the stocks growth prospects are in some respects less risky than other high multiple retailers who are relying more on new markets and acquisitions.”

Citi also expects some attractive dividends in the near term. The broker has pencilled in fully franked dividends per share of 16 cents in FY 2022 and 19 cents in FY 2023. Based on the current Baby Bunting share price of $3.97, this will mean yields of 4% and 4.8%, respectively.

Dexus Industria REIT (ASX: DXI)

Another ASX dividend share that could be in the buy zone is Dexus Industria.

It is an industrials-focused real estate investment trust (REIT) with a portfolio currently valued at ~$1.8 billion. Management notes that this portfolio has been constructed to provide investors sustainable income and capital growth prospects for security holders over the long term.

Morgans appears confident the company will deliver on this. As a result, it has an add rating and $3.65 price target on its shares.

As for dividends, the broker is forecasting dividends per share of 17.3 cents in FY 2022 and 17.6 cents in FY 2023. Based on the current Dexus Industria share price of $2.74, this will mean yields of 6.3% and 6.4%, respectively.

The post Brokers rate these ASX dividend shares as buys appeared first on The Motley Fool Australia.

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More reading

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• 2 high yield ASX dividend shares to buy according to analysts

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. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Baby Bunting. 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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