Why analysts say these excellent ASX dividend shares are buys

A female broker in a red jacket whispers in the ear of a man who has a surprised look on his face as she explains which two ASX 200 shares should do well in today's volatile climate

A female broker in a red jacket whispers in the ear of a man who has a surprised look on his face as she explains which two ASX 200 shares should do well in today's volatile climate

If you’re searching for dividend shares to add to your income portfolio, then the two listed below could be top options.

Analysts have rated these dividend shares as buys and are forecasting attractive yields in the coming years. Here’s what you need to know about these dividends shares:

Accent Group Ltd (ASX: AX1)

The first ASX dividend share to consider is Accent. It is the owner of a growing portfolio of footwear focused store brands including Athlete’s Foot, HYPEDC, Pivot, Platypus, Sneaker Lab, and Stylerunner.

It has unfortunately been a tough year for Accent due to lockdowns and now rising living costs and softer consumer spending. This has seen investors sell down the company’s shares, leaving them trading close to their 52-week low.

The team at Bell Potter appears to see this as a buying opportunity. Its analysts believe investors should focus on the long term due to its “dominant market share in the Australian footwear retailing industry and growth outlook in the youth focused sports apparel.”

The broker currently has a buy rating and $2.20 price target on the company’s shares.

In respect to dividends, Bell Potter has pencilled in a fully franked dividend of 5.8 cents per share in FY 2022 and then 10.7 cents per share in FY 2023. Based on the current Accent share price of $1.39, this will mean yields of 4.2% and 7.7%, respectively.

Wesfarmers Ltd (ASX: WES)

Another ASX dividend share that could be in the buy zone is this conglomerate.

Wesfarmers is the company behind a range of businesses such as Bunnings, Catch, Covalent Lithium, Kmart, Officeworks, and Priceline.

Although inflation and rising living costs are likely to be putting pressure on its retail businesses, the team at Morgans remains very positive. In fact, its analysts are optimistic the company will be able to navigate the tough retail environment due to its value offering. The broker thinks “Kmart is well-placed to benefit with the average price of an item at around $6-7.”

In light of this, its analysts have put an add rating and $58.40 price target on its shares.

As for dividends, Morgans is forecasting fully franked dividends per share of $1.65 in FY 2022 and $1.81 in FY 2023. Based on the current Wesfarmers share price of $45.51, this will mean yields of 3.6% and 4%, respectively.

The post Why analysts say these excellent ASX dividend shares are buys appeared first on The Motley Fool Australia.

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*Returns as of July 1 2022

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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 positions in and has recommended Wesfarmers Limited. 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 Scott Phillips.

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