2 top ASX dividend shares rated as buys this month

These dividend shares have been named as buys this month…

| More on:
blockletters spelling dividends bank yield

Image Source: Getty Images

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

sdf

Are you looking for some quality ASX dividend shares that could grow over the 2020s? If you are, then you may want to look at the ones listed below.

Here's what you need to know about these dividend shares:

Collins Foods Ltd (ASX: CKF)

The first ASX dividend share to look at is Collins Foods. It is a leading quick service restaurant operator with a focus on KFC restaurants in Australia and Europe. It also has a growing network of Taco Bell restaurants across several Australian states.

Collins Foods was a solid performer again in FY 2021. It reported a 12.4% increase in revenue to $1.07 billion and an 18.2% lift in underlying net profit after tax to $56.9 million. This was driven largely by its KFC Australia business, which reported same store sales growth of 12.9%.

The team at Canaccord Genuity were pleased with its performance. In response, its analysts put a buy rating and $13.35 price target on the company's shares.

Canaccord Genuity is also forecasting further dividend growth in the coming years. It has pencilled in fully franked dividends per share of 26 cents in FY 2022 and then 29 cents in FY 2023. Based on the latest Collins Foods share price of $12.49, this will mean yields of 2.1% and 2.3%, respectively.

Transurban Group (ASX: TCL)

Another ASX dividend share to look at is this toll road operator. While lockdowns have made many of its road barren, it is worth remembering that this is only temporary. As we saw last year, when life returns to normal, traffic volumes quickly recover.

So with the vaccine rollout going well, it may not be long until its roads are busy once again.

Analysts at Macquarie are positive on the company. This morning the broker retained its buy rating but trimmed its price target slightly to $14.66. Macquarie is forecasting dividends of 42.3 cents per share in FY 2022 and then 64.3 cents per share in FY 2023.

Based on the current Transurban share price of $14.36, this will mean yields of 3% and 4.5%, respectively.

Motley Fool contributor James Mickleboro owns shares of Collins Foods 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 recommended Collins Foods Limited. 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

Happy shareholders clap and smile as they listen to a company earnings report.
Dividend Investing

Broker says this dirt cheap ASX 200 stock could rise almost 50%

Bell Potter has very good things to say about this stock.

Read more »

Animation of a man measuring a percentage sign, symbolising rising interest rates.
Dividend Investing

Beat falling interest rates with these ASX dividend shares

Analysts think these shares could be top picks for income investors in a low interest rate environment.

Read more »

A group of five people dressed in black business suits scrabble in a flurry of banknotes that are whirling around them, some in the air, others on the ground as some of them bend to pick up the money.
Dividend Investing

2 ASX 200 shares that could make it rain dividends

These stocks are sending significant passive income to shareholders.

Read more »

Close-up of a business man's hand stacking gold coins into piles on a desktop.
Dividend Investing

Buy these popular ASX dividend stocks for 4% to 6% yields

Analysts think income investors should be snapping up these stocks while they can.

Read more »

A man reacts with surprise when her see a bargain price on his phone.
Dividend Investing

1 ASX dividend stock down 42% I'd buy right now

This business could be a great undervalued stock to buy.

Read more »

A man in his office leans back in his chair with his hands behind his head looking out his window at the city, sitting back and relaxed, confident in his ASX share investments for the long term.
Dividend Investing

Forget term deposits and buy these ASX dividend shares

Analysts think income investors should be buying these shares.

Read more »

Man smiling at a laptop because of a rising share price.
Dividend Investing

Why this little-known ASX dividend share is a top pick for this fund manager

There are multiple reasons why this fund manager is bullish on this stock.

Read more »

A young woman drinking coffee in a cafe smiles as she checks her phone.
Dividend Investing

3 blue chip ASX 200 dividend stocks to buy now

Analysts think these blue chips would be top picks for income investors.

Read more »