Are you looking for some quality ASX dividend shares to add to your income portfolio?
Then you might want to look at the ones listed below. Here's what you need to know about these dividend shares:
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Coles Group Ltd (ASX: COL)
This supermarket giant could be a dividend share to consider buying. This is due to its strong market position, focus on automation, and the normalisation of shopping trends.
It was thanks to a couple of these factors that Coles just handed in a solid full year result for FY 2021. For the 12 months ended 30 June, Coles reported sales revenue growth of 3.1% to $38,562 million and net profit after tax growth of 7.5% to $1,005 million. The latter was a touch ahead of the market's expectations. This allowed Coles to increase its full year dividend by 6% to a fully franked 61 cents per share.
Analysts at Morgans were pleased with the company's performance. In response, the broker retained its add rating and lifted its price target to $19.80. It is now forecasting dividends of 61 cents per share in FY 2022 and then 62 cents per share in FY 2023.
Based on the current Coles share price of $18.79, this represents yields of 3.2% and 3.3%, 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. This includes the CityLink in Melbourne, Cross City Tunnel in Sydney, and the AirportlinkM7 in Brisbane.
While traffic volumes have been impacted by the pandemic and recent lockdowns, they are expected to rebound once trading conditions return to normal.
In the meantime, Ord Minnett believes it is worth sticking with the company. Its analysts currently have a buy rating and $15.50 price target on its shares.
The broker is forecasting dividends of 36.5 cents per share in FY 2022 and then 48.4 cents per share in FY 2023. Based on the current Transurban share price of $14.02, this will mean yields of 2.6% and 3.5%, respectively.
