Analysts say these growing ASX dividend shares are buys right now

A man sees some good news on his phone and gives a little cheer.

A man sees some good news on his phone and gives a little cheer.

If you’re looking for dividend shares to buy, then the two listed below could be worth a look.

Both have been named as buys by analysts recently and tipped to provide attractive and growing yields. Here’s what you need to know about them:

Universal Store Holdings Ltd (ASX: UNI)

The first ASX dividend share to consider is Universal Store. It is a growing youth fashion retailer behind the Universal Store and Thrills brands.

Goldman Sachs is very positive on the company. Particularly given its exposure to younger consumers, which the broker expects to continue spending in 2023. This is due to their lack of exposure to rising interest rates and an increase in the minimum wage.

Goldman Sachs has a buy rating and $7.30 price target on its shares. The broker commented:

In addition to a strong outlook for Gen-Z spending, we see an opportunity for ongoing store roll-out for UNI which is the market leader in youth multi-brand apparel. Relative to youth footwear, the youth apparel category is under-penetrated in terms of store footprint; we forecast an additional 22 Universal stores will be rolled out in the next three years.

As for dividends, the broker is expecting 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 $5.81, this equates to yields of 4.5% and 5.1%, respectively.

Wesfarmers Ltd (ASX: WES)

Another ASX dividend share to consider is Bunnings, Kmart, and Officeworks owner (among others), Wesfarmers.

Morgans is a fan of this conglomerate and believes it could be a top option in the current environment. It has an add rating and $55.60 price target on Wesfarmers’ shares.

The broker believes Wesfarmers’ shares are attractively priced at the current level. It said:

Trading on 22.5x FY23F PE and 3.8% [now 3.7%] yield, we continue to see WES’s valuation as attractive for a high-quality business with a diversified group of retail and industrial brands, solid balance sheet and strong leadership team that will continue delivering long-term value for shareholders.

In respect to dividends, the broker is forecasting fully franked dividends per share of $1.82 in FY 2023 and $1.89 in FY 2024. Based on the current Wesfarmers share price of $49.22, this will mean yields of 3.7% and 3.8%, respectively.

The post Analysts say these growing ASX dividend shares are buys right now 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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Wesfarmers. 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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