Are you looking for dividend shares to buy? If you are, then you might want to look at the ASX shares listed below.
Here’s why analysts think these ASX dividend shares could be worth considering right now:
Baby Bunting Group Ltd (ASX: BBN)
The first ASX dividend share to consider is Baby Bunting. It is the leading baby products retailer with a strong and growing presence through its national superstores and online business.
Citi is a fan of the retailer and has a buy rating and $6.22 price target on its shares. This is due to its clear leadership position in a less discretionary category which stands to benefit from ~300,000 births a year in Australia.
It is thanks to this strong market position that the broker believes Baby Bunting can “outperform the broader small cap retail sector this year.” But it doesn’t expect its growth to stop there. Citi “forecast[s] a FY21 to FY24 EPS CAGR of 17%.”
As for dividends, Citi has pencilled in fully franked dividends per share of 16 cents in FY 2022 and 19 cents in FY 2023. Based on the current Baby Bunting share price of $4.71, this will mean yields of 3.4% and 4%, respectively.
Westpac Banking Corp (ASX: WBC)
Another ASX dividend share to consider is banking giant, Westpac. Due to concerns over the big four bank’s margin outlook and doubts over its cost cutting plans, its shares have fallen heavily in recent months.
However, the team at Morgans believes these concerns are unwarranted and has suggested that Westpac can overcome its margin issues and deliver on its cost-cutting targets.
In light of this, it believes the bank’s shares have been oversold and are great value now. The broker has an add rating and a $29.50 price target on the Westpac shares.
Morgans also expects attractive dividend yields in the near term. The broker has pencilled in fully franked dividends per share of $1.19 in FY 2022 and then $1.60 in FY 2023. Based on the current Westpac share price of $23.23, this will mean yields of 5.1% and 6.9% respectively.
The post 2 ASX dividend shares analysts say are buys now appeared first on The Motley Fool Australia.
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More reading
- Why ASX 200 bank shares are storming higher today
- Is the NAB (ASX:NAB) share price a buy? Top broker expects sector-leading earnings growth
- Brokers name 3 ASX shares to buy today
- Why this broker has big doubts over Westpac’s (ASX:WBC) cost cutting plans
- 5 things to watch on the ASX 200 on Friday
Motley Fool contributor James Mickleboro owns Westpac Banking Corporation. 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 Baby Bunting and Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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