Brokers name 2 ASX dividend shares to buy

Income investors that are looking for dividend options this week might want to check out the two ASX shares listed below.

Both of these ASX dividend shares have recently been tipped as buys by brokers. Here’s why they are bullish:

Coles Group Ltd (ASX: COL)

The first ASX dividend share that brokers rate as a buy is Coles.

It is of course one of Australia’s big two supermarket operators with over 800 stores around the country. In addition, the company operates a similar number of liquor and express stores.

The team at Citi is very positive on the company. Last week its analysts retained their buy rating and lifted their price target on the company’s shares to $21.00. The broker expects Coles’ sales to be boosted in FY 2023 from rising inflation.

In light of this, Citi is now forecasting fully franked dividends per share of 65 cents in FY 2022 and 75 cents in FY 2023. Based on the current Coles share price of $18.78, this will mean yields of 3.5% and 4%, respectively.

HomeCo Daily Needs REIT (ASX: HDN)

Another ASX dividend share that brokers rate highly is HomeCo Daily Needs REIT.

It is a property company with a focus on convenience-based assets including neighbourhood retail and retail parks.

The team at Goldman Sachs is very positive on the company’s outlook. Its analysts believe HomeCo Daily Needs is well-placed for growth over the medium term thanks to the shift to omni channel retailing and its diversified tenant base.

In light of this, the broker has put a buy rating and $1.65 price target on the company’s shares.

As for dividends, Goldman is forecasting dividends per share of 8 cents in FY 2022 and then 9 cents in FY 2023. Based on the current HomeCo Daily Needs share price of $1.34, this will mean yields of 6% and 6.7%, respectively.

The post Brokers name 2 ASX dividend shares to buy appeared first on The Motley Fool Australia.

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More reading

• 2 little-to-no-debt ASX 200 shares to buy in a downturn: fundie
• Is Coles an underrated ASX 200 dividend share with potential?
• Top brokers name 3 ASX shares to buy next week
• Why has the Coles share price outperformed the ASX 200 by more than 10% in 2022 so far?
• Experts name 2 quality ASX dividend shares to buy with 5%+ yields

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 COLESGROUP DEF SET. 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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