2 cheap ASX dividend shares to buy now: brokers

If you’re searching for cheap ASX dividend shares to buy, then it could be worth looking at the two named below.

Here’s what you need to know about them:

Domino’s Pizza Enterprises Ltd (ASX: DMP)

The first ASX dividend share for investors to consider is Domino’s. Its shares have been sold off this year after tough trading conditions and inflationary pressures weighed on its performance.

While this is disappointing, it may have created a buying opportunity for patient investors. Particularly given that management expects the company’s performance to be back on track with longer term targets in the second half.

The team at Morgans is positive on the company and believes that “now is the best time to consider an investment in a quality business like DMP that is facing headwinds that will reverse in time.”

Morgans has an add rating and an $90.00 price target on the company’s shares.

In addition, the broker is forecasting partially franked dividends per share of $1.55 in FY 2023 and $1.89 in FY 2024. Based on the current Domino’s share price of $63.84, this will mean yields of 2.4% and 3%, respectively.

Universal Store Holdings Ltd (ASX: UNI)

Another ASX dividend share to look at is Universal Store. It is an omnichannel retailer focused predominately on the youth apparel industry through its Universal Store and Thrills brands.

Its shares have also fallen heavily this year. This has been driven by concerns over consumer spending amid the cost of living crisis.

However, Goldman Sachs believes this is a mistake and has recently put a buy rating and $7.30 price target on its shares. The broker highlights that Universal Store’s target demographic will be less impacted by rising interest rates and also stands to benefit from an increase in the minimum wage.

Another positive is that Goldman is forecasting some big dividend yields in the near term. It has pencilled in fully franked dividends of 26.1 cents in FY 2023 and 29.9 cents in FY 2024. Based on the latest Universal Store share price of $5.11, this equates to yields of 5.1% and 5.85%, respectively.

The post 2 cheap ASX dividend shares to buy now: brokers appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Domino’s Pizza Enterprises. 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 Domino’s Pizza Enterprises. 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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