2 quality ASX dividend shares to buy today

Coles Group Ltd (ASX:COL) and this ASX dividend share could be top options for income investors. Here's why they are rated as buys…

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Are you looking to add some new faces to your income portfolio this week? If you are, then you might want to look at the ASX dividend shares listed below.

Here's what you need to know about them:

asx dividend shares represented by tree made entirely of money

Image source: Getty Images

Coles Group Ltd (ASX: COL)

The first dividend share to consider is this supermarket operator. It could be a good option due to the overall quality of its business model, its solid growth prospects, and generous dividend policy. The latter sees the company aim to pay shareholders 80% to 90% of its earnings as dividends.

One broker that believes the Coles share price is in the buy zone is Goldman Sachs. Last month the broker responded to Coles' third quarter update by retaining its buy rating and trimming its price target slightly to $20.50.

As for dividends, Goldman is expecting dividends per share of 62 cents in FY 2021 and 66 cents in FY 2022. Based on the current Coles share price of $16.21, this will mean fully franked yields of 3.8% and 4%, respectively, over the next two years.

Transurban Group (ASX: TCL)

Another ASX dividend share to look at is Transurban. It is a toll road operator with a portfolio of important roads throughout Australia and North America.

While traffic has been soft on its roads during the pandemic, it is starting to bounce back. The good news with this is that as traffic levels recover so too will its distributions.

It is for this reason that analysts at Ord Minnett are forecasting dividends of 37 cents per share in FY 2021 and then 58 cents per share in FY 2022. Based on the current Transurban share price of $14.34, this will mean yields of 2.6% and 4%, over the next two years.

Macquarie has an outperform rating and $16.00 price target on its shares.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET and Transurban Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Dividend Investing

Man holding out Australian dollar notes, symbolising dividends.
Dividend Investing

Why ASX dividend shares could still be better than term deposits

Let's see what dividend shares offer compared to term deposits.

Read more »

A man surrounded by huge piles of paper looks through a magnifying glass at his computer screen.
Dividend Investing

As the ASX indexes sink, these unique dividend shares are making investors money

The share price of these two dividend stocks has jumped higher over the past month.

Read more »

A woman looks nonplussed as she holds up a handful of Australian $50 notes.
Dividend Investing

How to invest $10,000 in ASX dividend shares in 2026

A strong income portfolio starts with the right mix. Here’s how I’d allocate my money.

Read more »

Man holding out Australian dollar notes, symbolising dividends.
Dividend Investing

2 monthly income ETFs with yield reaching as high as 9%

These ASX EFTs pay their investors every single month.

Read more »

$50 dollar Australian notes in the back pocket of jeans, representing dividends.
Dividend Investing

3 ASX dividend shares yielding 9% (or more)

These dividend-paying shares offer a great yield and potential for growth.

Read more »

Man holding a calculator with Australian dollar notes, symbolising dividends.
Dividend Investing

2 ASX dividend shares with yields above 7%

Large yields and potential capital growth. What’s not to love?

Read more »

Australian dollar notes in the pocket of a man's jeans, symbolising dividends.
Dividend Investing

These buy-rated ASX dividend stocks are forecast to pay 6%+ yields in 2027

Analysts have buy ratings on these high-yield stocks. Let's see what they offer.

Read more »

a man sits back from his laptop computer with both hands behind his head feeling happy to see the Brambles share price moving significantly higher today
Dividend Investing

3 ASX dividend shares to double up on right now

Analysts have buy ratings on these top income stocks.

Read more »