Analysts says income investors should buy these ASX dividend shares in November

Looking for dividend shares to buy? Listed below are two ASX dividend shares that brokers rate as buys.

Here’s why they are bullish on these dividend shares:

Adairs Ltd (ASX: ADH)

According to analysts at Goldman Sachs, Adairs could be an ASX dividend share to buy right now.

Goldman believes the furniture and homewares retailer’s shares have been oversold, particularly given the resilience of its business. It also feels that the market is too bearish on Adairs’ chances of achieving guidance this year.

It explained:

We view the re-affirmed guidance as a key positive for ADH, and we believe the market is pricing in EBIT that is 11-21% below the guidance range, and 12% below GSe. We view the core Adairs business as resilient in the current environment and do not believe the c.40% discount to discretionary retail peers is justified.

In light of this share price weakness, the broker is forecasting some very generous fully franked dividend yields in the near term. Its analysts expect dividends per share of 17 cents in FY 2023 and 20 cents in FY 2024. Based on the latest Adairs share price of $2.20, this will mean yields of 7.7% and 9.1%, respectively.

Goldman Sachs currently has a buy rating and $2.65 price target on the company’s shares.

QBE Insurance Group Ltd (ASX: QBE)

Over at Morgans, its analysts are tipping insurance giant QBE as an ASX dividend share to buy.

The broker is feeling positive about the company due to rising premiums and cost reductions. It explained:

With strong rate increases still flowing through QBE’s insurance book, and further cost-out benefits to come, we expect QBE’s earnings profile to improve strongly over the next few years. The stock also has a robust balance sheet and remains relatively inexpensive overall trading on ~9.1x FY23F PE

In respect to dividends, Morgans expects a 41.5 cents per share dividend in FY 2022 and then a 76.5 cents per share dividend in FY 2023. Based on the latest QBE share price of $12.58, this equates to yields of 3.3% and 6.1%, respectively.

The broker also sees plenty of upside for QBE’s shares. Morgans currently has an add rating and $14.93 price target on its shares.

The post Analysts says income investors should buy these ASX dividend shares in November appeared first on The Motley Fool Australia.

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More reading

• Why I’d grab today’s cheap ASX shares before it’s too late
• Brokers name 2 ASX dividend shares to buy
• How I’d build a portfolio by investing in top ASX shares now
• Goldman Sachs says these are the ASX dividend shares to buy
• Morgans names the ASX 200 dividend shares to buy

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 ADAIRS FPO. The Motley Fool Australia has positions in and has recommended ADAIRS FPO. 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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