Boost your retirement income with these ASX dividend shares: analysts

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

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

Accent Group Ltd (ASX: AX1)

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

It has been tipped as a buy by analysts at Bell Potter. The broker has put a buy rating and $2.10 price target on its shares.

In response to a recent trading update, the broker commented:

Accent Group (AX1) provided a trading update for the first 18 weeks of FY23, Group owned sales +52% on pcp and Gross margins +570bps vs down 700bps in the pcp. We see this as a solid start and expect AX1 to be well positioned as tougher comps are faced in Nov/Dec. We view the performance into the key seasonal period to be supported by the company’s healthy inventory position as per company’s commentary.

Bell Potter is expecting this positive start to the year to underpin fully franked dividends of 10 cents per share in FY 2023. It then expects further growth in FY 2024 to lead to a 12 cents per share dividend in FY 2024. Based on the current Accent share price of $1.79, this would mean yields of 5.6% and 6.7%, respectively,

Coles Group Ltd (ASX: COL)

Another ASX dividend share that could boost your retirement income is Coles. It is of course one of the big two supermarket operators and the owner of a large liquor store network.

The team at Morgans is positive on the company. In response to its recent first quarter update, the broker retained its add rating with a $19.50 price target.

Its analysts were pleased with the company’s performance during the quarter, noting that it was ahead of expectations. Based on this performance, the broker believes Coles’ shares are attractively price. It commented:

Supermarkets LFL sales increased 2.1% (vs MorgansF -1.2%) despite cycling heightened COVID-related sales in the pcp and customers returning to dining out at cafes and restaurants.

Trading on 20.6x FY23F PE and 4.0% [now 3.75%] yield, we continue to see COL as offering good value with the company’s solid balance sheet and defensive characteristics putting it in a good position to navigate through a weaker economic environment. The unwinding of local shopping should also help further market share gains.

Morgans is forecasting fully franked dividends of 64 cents per share dividend in FY 2023 and 66 cents per share dividend in FY 2024. Based on the current Coles share price of $17.01, this will mean yields of 3.75% and 3.85%, respectively, for investors.

The post Boost your retirement income with these ASX dividend shares: analysts appeared first on The Motley Fool Australia.

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More reading

• Why I’m buying ASX shares in this once-in-a-lifetime market to try and retire early
• Broker says these top ASX 200 dividend shares are buys
• Battle of the dividends: Do Woolworths shares pay more than Coles?
• Almost ready to retire? Here’s why I’d buy Coles shares for dividends
• Why did ASX 200 retail shares lead the market to fresh 25-week highs today?

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 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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