Analysts say these ASX dividend shares are buys

If you’re wanting to boost your income with some dividend shares, then you might want to consider the two listed below.

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

Accent Group Ltd (ASX: AX1)

The first ASX dividend share for investors to look at is footwear retailer Accent.

After a very tough time in FY 2022, Accent appears to be back on track this year. Its recent full year results release revealed that like for likes sales were up strongly during the early stages of FY 2023.

The team at Bell Potter remain very positive on the company and recently put a buy rating and $2.00 price target on its shares. It commented:

The first 7 weeks of FY23 has seen positive like-for-like (LFL) sales +18.9% vs the -16% LFL sales growth for the same period in FY22 and -13% for 1H22. The company’s focus on achieving full gross margins was encouraging as the company executes on a disciplined growth strategy to sustain earnings growth.

Bell Potter is also forecasting some attractive dividend yields in the coming years. It is expecting fully franked dividends of 9.5 cents per share in FY 2023 and 12.7 cents per share in FY 2024. Based on the current Accent share price of $1.43, this would mean yields of 6.6% and 8.8%, respectively, over the next couple of years.

Harvey Norman Holdings Limited (ASX: HVN)

Another ASX dividend share that could be in the buy zone is fellow retailer Harvey Norman.

Analysts at Goldman Sachs rate the company highly and have named it as a buy recently with a $4.80 price target. The broker continues to believe that Harvey Norman is well-placed to defend its strong market position from online disruption thanks to its favourable customer demographics. It expects this to support stronger than consensus earnings in FY 2023. Goldman explained:

Our FY23 NPAT is +7% vs FactSet consensus and our TP implied ex-property FY24E P/E of ~5x with dividend yield of 8%. We believe that HVN offers 21% TSR at an attractive valuation; reiterate buy.

Another positive is that the broker expects Harvey Norman to provide investors with generous dividends in the near term. It is forecasting fully franked dividends per share of 38 cents in FY 2023 and 32 cents in FY 2024. Based on the current Harvey Norman share price of $4.42, this will mean yields of 8.6% and 7.2%, respectively.

The post Analysts say these ASX dividend shares are buys 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 positions in and has recommended Harvey Norman Holdings Ltd. The Motley Fool Australia has positions in and has recommended Harvey Norman Holdings Ltd. 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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