Broker names 2 ASX dividend shares to buy next week

A woman looks questioning as she puts a coin into a piggy bank.

A woman looks questioning as she puts a coin into a piggy bank.

If you’re wanting to boost your income with some dividend shares, then you might want to consider the two listed below that have been named as buys by Goldman Sachs.

Here’s what you need to know about these dividend shares:

Elders Ltd (ASX: ELD)

The first ASX dividend share that Goldman Sachs is bullish on is Elders. It is an agribusiness company that provides a range of services to rural and regional customers across the Australia/New Zealand region.

After going through a difficult period, Elders has bounced back strongly and delivered solid earnings growth in the last couple of years. This has continue in FY 2022, with the company reporting an 80% increase in first-half EBIT to $132.8 million.

In response to this, Goldman Sachs put a buy rating and $21.00 price target on its shares. It also likes Elders due to its “strong track record; good industry structure; potential for positive earnings surprise; and an attractive valuation.”

As for dividends, Goldman is forecasting dividends per share of 50 cents in FY 2022 and 53 cents in FY 2023. Based on the current Elders share price of $11.28, this implies attractive yields of 4.4% and 4.7%, respectively.

Woolworths Group Ltd (ASX: WOW)

Another ASX dividend share that Goldman rates highly is Woolworths. It is of course the retail giant behind the eponymous supermarket chain. In addition, it owns Big W, Countdown, and the Everyday Rewards loyalty program.

Combined, the broker believes that Woolworths is well-placed for solid sales and profit growth through to FY 2024. It recently commented:

We forecast [a sales] CAGR of 6.6% and underlying NPAT of 14.1% over FY22-24e, with key driver being market share gain of AU Foods business at comp sales growth of FY23/24 8.8% and 6.6% respectively driven by effective cost-price pass through and additional mix improvement with relatively stable volume growth.

In respect to dividends, Goldman Sachs is forecasting fully franked dividends per share of 96 cents in FY 2022 and $1.18 in FY 2023. Based on the current Woolworths share price of $37.52, this will mean yields of 2.6% and 3.2%, respectively.

Goldman has a buy rating and $40.50 price target on its shares.

The post Broker names 2 ASX dividend shares to buy next week appeared first on The Motley Fool Australia.

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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 recommended Elders Limited. 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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