2 excellent ASX dividend shares experts rate as buys

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

Analysts have recently rated these dividend shares as buys. Here’s what you need to know about them:

Super Retail Group Ltd (ASX: SUL)

The first ASX dividend share that has been tipped as a buy is Super Retail.

According to a note out of Citi, its analysts have recently retained their buy rating on the retailer’s shares with an improved price target of $13.50.

Citi was pleased with Super Retail’s full year results and highlights the big improvements in its inventory position and the positive start to FY 2023. It commented:

Importantly, half of the $200 million lift in inventory in 1H22 reversed in 2H22. We believe that takes away at least part of the bear case downside in terms of lower margin risk as consumer spending softens. The trading update was robust, benefitting from cycling lockdowns and sustained consumer demand. We raise our earnings forecasts by ~14% in FY23e and ~1% in FY24e

As for dividends, Citi is forecasting fully franked dividends per share of 71 cents in FY 2023 and 66 cents in FY 2024. Based on the latest Super Retail share price of $9.84, this will mean yields of 7.2% and 6.7%, respectively.

Wesfarmers Ltd (ASX: WES)

Another ASX dividend share that is highly rated by analysts is Wesfarmers. It is the conglomerate behind a collection of businesses including Bunnings, Catch, Covalent Lithium, Kmart, Officeworks, and Priceline.

The team at Morgans are very positive on the company and have an add rating and $58.40 price target on its shares. They like Wesfarmers due to its strong brands, talented management team, and balance sheet strength. The broker commented:

WES possesses one of the highest quality retail portfolios in Australia with strong brands including Bunnings, Kmart and Officeworks. The company is run by a highly regarded management team and the balance sheet is healthy. [..] We see the pullback in the share price as a good entry point for longer term investors.

Morgans is also expecting some attractive dividend yields in the near term. It is forecasting fully franked dividend per share of $1.82 in FY 2023 and $1.89 in FY 2024. Based on the current Wesfarmers share price of $46.14, this will mean yields of 3.9% and 4.1%, respectively.

The post 2 excellent ASX dividend shares experts rate as buys appeared first on The Motley Fool Australia.

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More reading

• Wesfarmers shares: Buy, hold, or fold?
• Wesfarmers share price drops 4%: Time to buy?
• What’s driving ASX 200 consumer shares on Tuesday?
• Why this top broker is tipping 15% upside for the Wesfarmers share price
• How I’d invest $10,000 in ASX shares if I were saving for a house

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 positions in and has recommended Super Retail Group Limited. The Motley Fool Australia has positions in and has recommended Super Retail Group Limited and Wesfarmers Limited. 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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