The Woolworths Group Ltd (ASX: WOW) share price has gained 5.27% since Endeavour Group Ltd (ASX: EDV) split ranks and listed on the ASX.

Woolworths’ shares finished Friday’s session trading at $39.52, 0.89% higher than its prior closing price. It was also the Woolworths’ highest closing price ever, a record it has broken every day since Wednesday.

Endeavour debuted on the ASX on 24 June 2021. At that point, Woolworths shares were going for $37.54 apiece.

Let’s take a look at what Woolworths’ has been up to since it spun off its hotel, liquor, and gambling holdings.

How Woolworths‘ shares have performed since Endeavor

While some were concerned the spin-off could be disastrous, Woolworths has gone from strength to strength since ditching Endeavor.

Despite falling 15% in intraday trade on 24 June, the Woolworths share price finished Endeavor’s first day on the ASX 0.5% higher.

Since then, it appears the Woolworths share price has been boosted by COVID-19 lockdowns in Sydney, news it will open an online-only store, and the creation of a digital wallet.

However, the next boost to Woolworths might come from its latest market campaign.

Today’s Fresh Food People

The Woolworths share price was higher on Friday amid the launch of the company’s new brand campaign.

While the marketing campaign likely had little effect on the Woolworths share price, it might have moved viewers of the Tokyo Olympic Games.

The new campaign was first broadcast on television during the opening ceremony on Friday night.

It’s a reimagining of the now 34-year-old Fresh Food People campaign, titled Today’s Fresh Food People.

According to Woolworths, the campaign celebrates the diversity of the employees of Woolworths’ supermarkets, Metro stores, online marketplace, and the Woolworths Food Company.

Woolworths’ chief marketing officer Andrew Hicks commented on the campaign, saying:

Australia and the world has changed profoundly over the last 18 months, and so have the expectations of our customers. As today’s fresh food people, we need to evolve and grow with them…

[We] will continue our focus on our team bringing a little good to everyone everyday while ensuring our priorities match customers’ expectations on how we can create a better tomorrow for all Australians. Keeping Australians COVID-safe and the care we show for team and customers during these times will also continue and be a key part of what it means to be Today’s Fresh Food People.

Woolworths share price snapshot

It goes without saying that the Woolworths share price has been having a good run lately.

Woolworths shares have gained 16% since the beginning of 2021. They’re also 20% higher than they were this time last year.

The post How the Woolworths (ASX:WOW) share price has performed since Endeavour’s demerger appeared first on The Motley Fool Australia.

More reading

• The other side of lockdown – ASX supermarket shares are flying
• Woolworths (ASX:WOW) store closes after staff contract COVID-19
• What is the outlook for the Woolworths (ASX:WOW) share price?
• Has Dry July hit the Endeavour (ASX:EDV) share price?
• Which ASX 200 shares are winning from latest retail trade figures?

Motley Fool contributor Brooke Cooper 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 no position in any of the stocks mentioned. 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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Once again, a large number of broker notes hit the wires last week. Some of these notes were positive and some were bearish.

Three sell ratings that caught my eye are summarised below. Here’s why top brokers think investors ought to sell these shares next week:

Bubs Australia Ltd (ASX: BUB)

According to a note out of Citi, its analysts have retained their sell rating and 35 cents price target on this infant formula company’s shares. The broker has been looking at the Chinese infant formula market and expects the new three-child policy to be a boost to overall industry sales. However, it expects the increase in birth rates to be skewed to lower tier cities. These are areas where domestic infant formula brands have strong positions. As a result, Bubs may not benefit greatly. The Bubs share price ended the week at 50 cents.

Qantas Airways Limited (ASX: QAN)

A note out of Credit Suisse reveals that its analysts have retained their underperform rating and cut their price target to $3.90. According to the note, the broker has reduced its forecasts to reflect its belief that domestic capacity levels will be lower than expected because of lockdowns. The broker is forecasting capacity of just 40% during the first quarter and 70% during the second quarter compared to pre-COVID levels. It fears that if this disruption continues, it could mean Qantas will be to raise funds in the future to strengthen its balance sheet. The Qantas share price was fetching $4.55 on Friday afternoon.

Syrah Resources Ltd (ASX: SYR)

Analysts at Morgan Stanley have retained their underweight rating and 80 cents price target on this graphite producer’s shares. According to the note, Syrah’s production during the June quarter was ahead of its expectations. However, shipping container issues led to weaker sales volumes. Outside this, Morgan Stanley has previously spoken about concerns over potentially high capital expenditure that may need extra funding. The Syrah share price ended the week at $1.30.

The post Top brokers name 3 ASX shares to sell next week 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 recommended BUBS AUST FPO. 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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When it comes to dividends, AGL Energy Limited (ASX: AGL) shares have been favourites with income investors for a long time.

In light of this, with so much going on right now at the energy company, investors may be wondering if that remains the case.

Should you buy AGL shares for the dividend yield?

Over the last 12 months AGL shares have yields dividends per share of 92 cents. This comprises FY 2020’s final dividend of 51 cents per share and FY 2021’s interim dividend of 41 cents.

Based on the current AGL share price of $7.99, this represents a massive partially franked 11.4% yield.

Unfortunately, the prospect of a similarly generous yield over the next 12 months is not good. In fact, investors may want to prepare for a significant cut. Particularly given management’s decision to cancel its special dividend plans due to its demerger.

What are analysts expecting?

Goldman Sachs recently put a neutral rating and $8.40 price target on AGL shares.

The broker said: “While AGL looks cheap vs historical valuation metrics, we’d highlight that the broader ASX energy sector remains heavily discounted as well. So while macro tailwinds post-Covid support the fundamental recovery for the business, near-term shareholder returns have been reduced with the removal of the special dividend and introduction of an underwritten DRP.”

Goldman Sachs is forecasting dividends per share of 66 cents in FY 2021 (41 cents has already been paid), 45 cents per share in FY 2022, and then 47 cents per share in FY 2023.

With AGL shares currently fetching $7.99, this will mean yields of 8.2%, 5.6%, and 5.9%, respectively.

One broker that isn’t as positive is Credit Suisse. Its analysts currently have a sell rating and $6.70 price target on AGL shares.

Credit Suisse is also forecasting a big dividend cut in FY 2022. It has pencilled in a 35 cents per share dividend, which implies a 4.4% yield.

The post Should you buy AGL (ASX:AGL) shares in July 2021 for the dividend yield? 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 no position in any of the stocks mentioned. 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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There are a group of ASX dividend shares that are well liked by brokers.

Businesses that are rated as buys by analysts whilst also having good yields may be opportunities for people looking for income. However, there’s always a risk that the broker(s) are wrong about a business.

Here are two ASX dividend shares that some brokers are a fan of:

Super Retail Group Ltd (ASX: SUL)

Super Retail is a retailer that’s liked by a number of different brokers. It has retail brands including Supercheap Auto, Rebel, BCF and Macpac.

It’s currently rated as a buy by at least four different brokers including Credit Suisse. The price target is $14.45, which suggests an increase of the Super Retail share price of around 10% over the next 12 months, if Credit Suisse is right.

The company has seen a large amount of growth since the onset of COVID-19. Its store numbers and active club members have also been increasing over the last few years.

Online sales are playing an important part of the picture, with a large amount of growth. In the first half of FY21, it saw growth of online sales of 87%. This also came with “strong” operating leverage. Online sales were $237 million in the first half of FY21, up from $127 million in the first half of FY20.

The ASX dividend share saw its margins maintained in the second half of FY21, like it was in the first half, thanks to strong customer demand. This meant there was limited promotional activities.

In the first 44 weeks of FY21, Super Retail saw 28% growth of like for like sales.

Credit Suisse believes that at the current Super Retail share price, it will pay a grossed-up dividend yield of 5.4%.

Metcash Limited (ASX: MTS)

Metcash is a diversified retailer. It supplies national networks of IGA and Foodland. It supplies liquor businesses like Cellarbrations, The Bottle-O, IGA Liquor, Duncans and Thirsty Camel.

The ASX dividend share also has a number of hardware brands including Mitre 10, Home Timber & Hardware and a majority ownership of Total Tools.

It’s currently rated as a buy by at least three brokers. One of the brokers that rates Metcash as a buy is Citi.

The broker points to market share gains in supermarkets and a strong performance in hardware as reasons to like the business.

FY21 saw hardware sales revenue go up by 24.7% to almost $2.6 billion and hardware underlying earnings before interest and tax (EBIT) grew 61.5% to $136 million.

The business has committed to return a significant amount of capital to shareholders while continuing to invest in future growth. The target dividend payout ratio has been increased from 60% to 70%. The FY21 annual dividend was increased by 40% to 17.5 cents. It also announced a $175 million share buy back.

At the time of the FY21 result release, it announced that it increased its ownership of Total Tools from 70% to 85% for a cost of $59.4 million.

At the current Metcash share price, Citi believes it’s going to pay a grossed-up dividend yield of 6% in FY22.

The post 2 ASX dividend shares rated as top buys by brokers appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison 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 owns shares of and has recommended Super Retail Group Limited. 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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The CSL Limited (ASX: CSL) share price might be one to think about with the biotech giant expecting a recovery.

What is CSL?

According to the ASX, CSL has a market capitalisation of almost $132 billion.

It’s based in Melbourne and CSL describes itself as a leading global biotech company that develops and delivers innovative biotherapies and influenza vaccines that save lives, and help people with life-threatening medical conditions live full lives. The company has more than 27,000 employees around the world, with operations in more than 35 countries.

Here are some of the reasons why the CSL share price might be one to think about:

Research and development

One of the key ways that CSL aims to stay ahead of its competitors is by investing an enormous amount of money into research and development. It has more than 1,700 employees dedicated to research and development.

Indeed, CSL looks to spend around 10% of its annual revenue on R&D each year. Due to the effects of COVID-19, it re-prioritised spending and may spend up to 11% of revenue on R&D.

Multiple large, late stage R&D programs are underway providing potential new growth opportunities.

COVID-19 recovery for CSL products

CSL has been affected by COVID-19 impacts.

One of the impacts has been that plasma collections continue to be challenging, but it has multiple initiatives to drive an improvement.

Initiatives include enhanced targeted marketing initiatives to increase collections, adoption of new technology and the plasma hold period has been reduced from 60 to 45 days. The roll-out of COVID-19 vaccines is increasing mobility.

As the COVID-19 pandemic recedes, growth in doctor visits, elective and emergency procedures are expected, leading to growth in product demand.

A recovery of plasma collections is one of the things that UBS is looking for and why it rates it as a buy with a price target of $330.

Seqirus

CSL’s vaccine business has seen a surge in activity.

The COVID-19 pandemic is driving demand for influenza vaccines. In the FY21 half-year result, Seqirus revenue increased by 38% to US$1.34 billion. Growth here was particularly driven by North America (revenue was up 38%) and the EU (where revenue grew 64%).

This helped the overall CSL earnings before interest and tax (EBIT) grow 42% to US$2.36 billion, net profit grow 44% to US$1.8 billion and cashflow jump 87% to US$2.3 billion.

CSL share price

According to UBS, the CSL share price is valued at 44x FY21’s estimated earnings and 46x FY22’s estimated earnings.

The broker also believes that the healthcare giant is going to grow its annual dividend to $2.61 per share in FY22.

The post 3 reasons why the CSL (ASX:CSL) share price could be one to look at appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. 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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This weekend could be a good time to look at ASX shares that have e-commerce exposure in light of all the lockdowns that are happening around the country.

There is no jobkeeper this time around, but people are still stuck in their houses with limited ways of buying the products that they may want to purchase.

These two ASX shares may be good ones to think about:

Kogan.com Ltd (ASX: KGN)

Kogan is one of the businesses that has seen an acceleration of growth over the last 16 months.

The business sells a wide variety of products through its website including TVs, computers, phones, sports and garden gear, clothes, food and so on. There are also extra services that it sells through third party providers such as insurance, superannuation, energy and mobile.

It has been facing difficulties over the last few months relating to excess inventory and demurrage costs. But prior to that it was seeing economies of scale with rising margins at the gross profit margin, the earnings before interest, tax, depreciation and amortisation (EBITDA) margin and net profit margin lines.

More Kogan active customers and members allows the business to sell more of their products and services to them. Each customer can become more valuable.

Kogan recently told the market how it performed in FY21. It said gross sales grew by 52.5% and gross profit increased 61%. Scale benefits are likely to be felt in future years as the business no longer faces the inventory issues. This year’s adjusted EBITDA only went up 23.1%. But active customers rose 46% to 3.21 million for Kogan.com, with 764,000 for Mighty Ape.

The ASX share said that “efforts to bring down levels of inventory have come a very long way, and inventory is approaching the right level for the business. The company expects improved efficiency moving forward.”

According to Commsec, the Kogan share price is valued at 23x FY23’s estimated earnings.

Adairs Ltd (ASX: ADH)

Adairs is another business that is rapidly growing its online sales. The business says that it’s the largest omni channel speciality retailer of home furnishings and home decoration products. It has two businesses – Adairs and Mocka. Mocka is a vertically-integrated pure-play online home and living products designer. It’s a retailer in Australia and New Zealand, selling products in the home furniture and decoration, kids and baby categories.

In the FY21 first half, group sales increased almost 35% to $243 million, with group online sales of $90.2 million (making up 37.1% of total sales). Adairs online sales increased 95.2% and Mocka sales increased 44.4% to $28 million.

Adairs sees Mocka as an important part of its growth potential. Australian brand awareness is increasing, with website visits up 56%. It has expanded its Australian warehouse facilities to support growth. Management say there’s an opportunity to increase its market share and expand its product categories. If Mocka achieves the same sales to population in Australia as New Zealand, annualised sales could grow from $31.7 million in Australia to $111.3 million.

Larger stores are another avenue for growth for the ASX share. Larger stores are more profitable because it allows the company to showcase more products and categories, while achieving an average increase of 950 basis points to the store profit contribution margin. A typical upsized store delivers between $250,000 to $350,000 more profit annually after upsizing, representing around a 60% average increase in profit. New profitable store opportunities remain.

According to CMC, the Adairs share price is valued at 11x FY22’s estimated earnings.

The post 2 ASX shares that could be worth looking at this weekend appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ADAIRS FPO. The Motley Fool Australia owns shares of and has recommended ADAIRS FPO and Kogan.com ltd. 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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If you’re looking to add some growth shares to your portfolio, then you might want to take a look at these shares listed below.

Here’s why these ASX shares could be top options for growth investors:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

The first option for growth investors to look at is an ETF that is invested in a group of growth shares. The BetaShares Asia Technology Tigers ETF provides investors with easy access to some of the most exciting tech companies in the Asian market. These are the companies that are leading Asia’s technological revolution and have been tipped to grow strongly over the long term. Particularly given the region’s younger and tech savvy population.

Among the companies included in the fund are the likes of Alibaba, JD.com, Pinduoduo, Samsung, Taiwan Semiconductor, & Tencent.

Hipages Group Holdings Ltd (ASX: HPG)

Another ASX growth share to look at is Hipages. It is a leading Australian-based online platform and software as a service (SaaS) provider. The company’s platform connects tradies with residential and commercial consumers, providing job leads from homeowners and organisations looking for qualified professionals. Its platform continues to grow in popularity with both consumers and tradies. This is underpinning strong sales growth in FY 2021.

Analysts at Goldman Sachs are very positive on the company’s future. In fact, they see a huge growth runway ahead of it. Last week the broker retained its buy rating and lifted its price target by 20% to $4.10.

WiseTech Global Ltd (ASX: WTC)

A final growth share to consider is WiseTech Global. It is the logistics solutions company behind the popular CargoWise One platform. This platform allows users to execute complex logistics transactions and manage freight operations from a single, easy to use platform. It appears well-placed to continue its strong growth long into the future. This is thanks to its high quality platform, strong market position, and growing freight volumes globally. It also looks set to benefit from its customers making acquisitions, which is expected to lead to increased usage.

Morgan Stanley has an overweight rating and $35.00 price target on its shares.

The post 3 excellent ASX growth shares you need to know about 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. owns shares of and has recommended AFTERPAY T FPO and Hipages Group Holdings Ltd. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. 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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The Telstra Corporation Ltd (ASX: TLS) share price will be one to watch next month when it releases its highly anticipated full year results.

Ahead of the release, I thought I would look to see what is expected from the telco giant.

Why are Telstra shares on watch during reporting season?

There are a few things for investors to look out for during reporting season if they own Telstra shares. These include its profits, dividend, guidance for FY 2022, restructure update, and capital return plans.

In respect to its profits, Telstra is expecting to report underlying earnings before interest, tax, depreciation and amortisation (EBITDA) in the range of $6.6 billion to $6.9 billion. This includes an assumed in-year NBN headwind of approximately $700 million.

From this, a final fully franked dividend of 8 cents per share is expected to be declared. This will bring its full year dividend to 16 cents per share, which is flat year on year. Based on where Telstra shares currently trade, this will mean a yield of 4.25%.

FY 2022 guidance

It has been a long time since Telstra dared talk about growth. But that has all changed recently, which goes some way to explaining why Telstra shares have been in such good form this year.

When Telstra released its half year results in February, the company’s CEO, Andy Penn, revealed that he was aiming for EBITDA growth in FY 2022 and then further growth in FY 2023.

He said: “To get the real benefits from all the effort we’ve already made, Telstra needs to be bold. I’ve set an aspiration for mid to high single-digit growth in underlying EBITDA in FY22 and $7.5 to $8.5 billion of underlying EBITDA in FY23. I am confident we can deliver this if we remain focused.”

Telstra’s restructure

It is possible Telstra will also provide an update on its restructure plans with its full year results.

This restructure will see Telstra split into three separate entities – InfraCo Fixed, InfraCo Towers, and ServeCo.

Mr Penn believes the new legal structure will be an important milestone in Telstra’s T22 strategy and comes at a significant inflection point in the company’s history.

Telstra shares being bought back?

Also giving Telstra shares a boost recently has been the prospect of capital returns in the near future. This follows the recent sale of 49% of its Towers business for $2.8 billion.

Completion of the sale is expected in the first quarter of FY 2022, with Telstra intending to return approximately 50% of net proceeds to shareholders.

Mr Penn has suggested that a share buy-back is likely to be the way these funds are returned. But all will be revealed with its results release.

So there you go. A lot to look out for and a lot that could move Telstra shares during reporting season.

The post Own Telstra (ASX:TLS) shares? Here’s what to look for during reporting season 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 owns shares of and has recommended Telstra Corporation Limited. 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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There are a lot of different things to consider when it comes to the Fortescue Metals Group Limited (ASX: FMG) share price.

What is Fortescue?

Fortescue is one of the largest iron ore miners in the world. But it’s actually more than 100 years younger than the other two big ASX players of BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO).

It has a number of different operations. That includes the Chichester and Solomon mining hubs. It’s also developing the Western Hub, home to the new Eliwana mine. The Iron Bridge magnetite project was an industry leader in cost and energy efficiency. It will be one of the highest grade magnetite projects in the world, according to management.

It’s currently doing exploration activities in New South Wales and South Australia, as well as in Ecuador and Argentina, and preliminary exploration activities on tenements that are in application in Colombia, Peru, Portugal and Kazakhstan. It’s looking for copper, gold and lithium.

But what are some of the things that investors are thinking about the Fortescue share price right now?

The iron ore price

Commodity prices have a major impact on the profit that resource companies can generate. This in turn can have a sizeable effect on the Fortescue share price.

Higher iron ore prices is leading to bigger profit for Fortescue.

In the FY21 half-year result, Fortescue saw its realised price for iron ore increase by 42% from US$80.36 per dry metric tonne (dmt) to US$114.02 per dmt. This helped revenue rise 44% to US$9.3 billion and underlying net profit after tax (NPAT) grew 66% to US$4.1 billion.

In the third quarter of FY21, it saw average revenue of US$143 per dmt, which was an increase of 17% from the previous quarter.

Fortescue dividends

Fortescue is committed to paying out a large amount of its profit to shareholders of dividends.

The large iron ore miner has said that it’s going to pay around 80% of its net profit each year to investors. The other 20% is going to be used to fund future growth. It will invest 10% to fund renewable energy growth through Fortescue Future Industries (FFI), with another 10% to fund other resource growth opportunities.

Dividends can make up a large part of potential shareholder returns.

The broker Credit Suisse thinks that Fortescue will pay an annual dividend of $3.61 per share in FY21. That translates to a fully franked dividend yield of 14.3%.

Then, in FY22, it’s expected to pay an annual dividend of $3.85 per share. That suggests a fully franked dividend yield of 15.3%.

Fortescue Future Industries

FFI has been established to identify and pursue renewable energy and green hydrogen projects both in Australia and globally have been identified.

Fortescue wants to leverage its track record of identifying, assessing and developing large-scale resource and infrastructure opportunities. It’s going to bring its capabilities of adopting innovation and technology to ensure future green energy projects to position Fortescue at the forefront of the emerging industry.

It has said that the Government of the Democratic Republic of Congo has invited interested corporations and governments to contact FFI if they have investment or service interest in the Grand Inga Hydroelectric projects including Matadi and Pioka projects.

FFI recently said it’s delivering on some of its targets.

For example, it has achieved successful combustion of ammonia in a locomotive fuel, with a pathway to achieve renewable green fuel. It has also completed the design and construction of a combustion testing device for large marine (ship) engines.

Fortescue share price valuation

At the current Fortescue share price, it’s valued at under 6x FY21’s estimated earnings according to Credit Suisse.

The post Why investors are looking at the Fortescue (ASX:FMG) share price appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor Tristan Harrison owns shares of Fortescue Metals Group Limited. 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 no position in any of the stocks mentioned. 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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Are you looking to add some top ASX dividend shares to your portfolio? Then you may want to look at the buy-rated ones listed below.

Here’s why they could be top options for income investors next week:

Accent Group Ltd (ASX: AX1)

The first ASX dividend share to look at is Accent. It is a retail group with a growing collection of popular footwear-focused store brands. These include 4 Workers, Glue Store, HYPEDC, Platypus, Sneaker Lab, Stylerunner, and The Athlete’s Foot.

Accent has been performing very strongly this year. This is being driven by the popularity of its brands, a favourable shift in consumer spending, strong online sales, and its store network expansion.

The good news is that the team at Bell Potter believe the company still has plenty of growth ahead of it. In light of this, it is recommending Accent as a buy with a $3.30 price target.

As for dividends, Bell Potter is forecasting fully franked dividends of 11.7 cents per share in FY 2021 and then 12.3 cents per share in FY 2022. Based on the latest Accent share price of $2.54, this represents fully franked yields of 4.6% and 4.8%, respectively, over the next couple of years.

Fortescue Metals Group Limited (ASX: FMG)

Another ASX dividend share to look at is this leading iron ore producer. This is because it is currently benefiting greatly from very strong prices for the steel making ingredient.

For example, at the end of last week the spot iron ore price was fetching over ~US$200 a tonne. And while Fortescue’s lower grade product trades at a discount to the benchmark iron ore price, it is still materially more than Fortescue’s cash cost guidance of US$13.50 to US$14.00 per wet metric tonne.

One broker that is positive on the mining giant is Macquarie. It is expecting the company to generate significant free cash flow in the near term, leading to very big dividends.

Macquarie is forecasting fully franked dividends of $3.45 per share in FY 2021 and then $2.45 per share in FY 2022. Based on the latest Fortescue share price of $25.25, this will mean fully franked yields of 13.6% and 9.7%, respectively.

Macquarie has an outperform rating and $27.00 price target on the miner’s shares.

The post 2 buy-rated ASX dividend shares with big fully franked yields appeared first on The Motley Fool Australia.

More reading

• Own Fortescue (ASX:FMG) shares? Here’s what to look for during reporting season
• Macquarie picks the best ASX shares to buy for the August reporting season
• Forecast crash in Aussie dollar to under US70 cents to boost these ASX 200 shares
• The 2 best shares to hang your hat on: fund managers
• How big will the Fortescue (ASX:FMG) dividend be over the next 12 months?

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 recommended Accent Group. 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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