Brokers name 2 ASX dividend shares to buy now

Are you looking for some dividend shares to add to your income portfolio? If you are, then the two listed below could be worth considering.

That’s because top brokers have recently named these dividend shares as buys. Here’s why analysts are positive on them:

Coles Group Ltd (ASX: COL)

Coles could be an ASX dividend share to buy right now according to analysts at Citi. The broker currently has a buy rating and $20.10 price target on its shares.

The broker likes Coles due to its strong market position and positive exposure to inflation. It expects that “food inflation will benefit supermarkets significantly while operating costs should remain less than top line inflation, benefiting margins.”

Citi is also forecasting some attractive dividend yields for investors in the coming years. It is expecting fully franked dividends of 74 cents per share in FY 2023 and then 79 cents per share in FY 2024.

Based on the latest Coles share price of $17.60, this will mean yields of 4.2% and 4.5%, respectively, over the next two financial years.

Transurban Group (ASX: TCL)

Another ASX dividend share that brokers rate as a buy is toll road operator Transurban.

Macquarie is positive on Transurban and currently has an outperform rating and $14.66 price target on its shares.

Its analysts believe that the company is one of the best defensive options for income investors on the Australian share market at this time. Especially given its opportunity to raise prices as inflation rises and its burgeoning development pipeline.

As for dividends, Macquarie is forecasting dividends per share of 55 cents in FY 2022 and then 58.5 cents in FY 2023. Based on the current Transurban share price of $13.71, this implies yields of 4% and 4.2%, respectively.

The post Brokers name 2 ASX dividend shares to buy now appeared first on The Motley Fool Australia.

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More reading

• Why did the Coles share price have such a rough trot in August?
• Boost your income with these ASX dividend shares: analysts
• Why is the Coles share price having such a lousy end to the week?
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares 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 has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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