If you’re searching for dividend shares to buy when the market reopens, then it could be worth checking out the two listed below.

Here’s why they have been tipped as buys:

Accent Group Ltd (ASX: AX1)

The first ASX dividend share to consider buying is Accent Group. It is the fashion and footwear retailer behind brands including Hype DC, The Athlete’s Foot, Glue, Platypus, Sneaker Lab, and Stylerunner.

Despite the cost of living crisis, the company has been performing very strongly. This has been driven thanks to the popularity of its brands and its exposure to younger consumers, which have less exposure to rising rates and more exposure to increases in the minimum wage.

Goldman Sachs is fan of the company and has a buy rating and $2.90 price target on its shares. It commented:

We believe AX1 offers an attractive exposure to a young Australian consumer that is uniquely resilient to inflationary and broader economic pressures given (1) a high proportion live at home; (2) more than two-thirds are working; (3) high and increasing minimum wage entitlements and; (4) a heavy skew towards discretionary spending.

As for dividends, the broker is forecasting a fully franked dividend of 15 cents per share in FY 2023. Based on the current Accent share price of $2.32, this will mean a yield of 6.5%.

Westpac Banking Corp (ASX: WBC)

Another ASX dividend share to buy according to analysts is Westpac.

It is Australia’s oldest bank and the name behind the eponymous Westpac brand and a number of regional brands such as Bank SA and St George.

Morgans is a fan of the company and has an add rating and $25.80 price target on its shares. It commented:

We view WBC as having the greatest potential for return on equity improvement amongst the major banks if its business transformation initiatives prove successful. The sources of this improvement include improved loan origination and processing capability, cost reductions (including from divestments and cost-out), rapid leverage to higher rates environment, and reduced regulatory credit risk intensity of non-home loan book.

Morgans is expecting this to lead to a fully franked dividend 153 cents per share in FY 2023. Based on the current Westpac share price of $21.79, this will mean a sizeable 7% yield.

The post Buy Westpac and this ASX dividend share next week: analysts appeared first on The Motley Fool Australia.

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More reading

• Here’s how I would secure monthly dividends in the 2024 financial year with these ASX stocks
• Here’s how much I’d need to invest in Westpac shares to generate a $150 monthly income
• Why are ASX 200 bank shares like CBA being annihilated today?
• These 3 ASX 300 shares are dividend dynamos!
• Morgans names 3 more of the best ASX shares to buy in March

Motley Fool contributor James Mickleboro has positions in Westpac Banking. 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 Accent Group and Westpac Banking. 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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