Are you looking to bolster your income portfolio with some quality ASX dividend shares? Then you might want to take a look at the ones listed below.
Here's what you need to know about these ASX dividend shares:
Coles Group Ltd (ASX: COL)
The Coles share price has come under pressure since the release of its half year results this month. Although the supermarket giant delivered an impressive result, its outlook spooked the market. While the pullback is disappointing, it appears to have created a buying opportunity for income investors.
According to a note out of Goldman Sachs, in response to its results, its analysts have reaffirmed their buy rating but trimmed their price target slightly to $20.70. This is notably higher than the current Coles share price of $15.91.
In addition, Goldman is forecasting dividends of 62 cents per share in FY 2021 and 67 cents per share in FY 2022. If this proves accurate, income investors will receive fully franked 3.9% and 4.2% yields, respectively.
Super Retail Group Ltd (ASX: SUL)
Another company that delivered a strong half year result was Super Retail. The diversified retail group reported a 23% increase in sales to $1.78 billion and a massive 139% increase in underlying net profit after tax to $177.1 million.
This strong result was driven by solid like for like sales growth across the company and supported by impressive online sales. The latter jumped 87% over the prior corresponding period to $237.4 million.
Positively, its outlook remains positive, particularly given the weak base the company is cycling through Easter and into May. This could mean a similarly strong full year result in August.
Goldman Sachs is a fan of the company and responded to its result by reiterating its buy rating and lifting its price target to $15.00. The broker is also forecasting a dividend of ~81 cents per share in FY 2021 (including a special dividend). Based on the current Super Retail share price, this represents a fully franked 6.9% yield.
