2 growing ASX dividend shares analysts rate as buys

These dividend shares are growing nicely…

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Fortunately, in this low interest rate environment, the Australian share market is home to a collection of quality dividend shares.

Two that could be in the buy zone are listed below. Here's what analysts rate these dividend shares as buys:

Elders Ltd (ASX: ELD)

The first ASX dividend share for investors to look at is Elders. It is one of Australia's largest agribusiness companies providing livestock, real estate, feed and processing, wool agency services, financial planning, and grain marketing services to rural and regional customers.

After going through a tough time during the 2010s, things are now looking very positive for the company. This has been driven largely by the success of Elders' transformation plan and acquisitions.

Goldman Sachs is a big fan of Elders and has a conviction buy rating and $15.65 price target on its shares. It likes Elders due to the rationalisation of the rural services industry, margin expansion through backward integration, and the benefits of its large scale systems modernisation project.

Another positive is that Goldman expects solid dividend growth in the coming years. It is forecasting fully franked dividends of 40 cents per share in FY 2022 and 42 cents per share in FY 2023. Based on the current Elders share price of $11.72, this will mean yields of 3.4% and 3.6%, respectively, over the next two years.

Transurban Group (ASX: TCL)

A second 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. These include CityLink in Melbourne, WestConnex in Sydney, and the Logan Motorway in Brisbane.

Although traffic volumes have been impacted by lockdowns, they are rebounding now Australia is moving on from the pandemic. In addition, with international borders reopening later this month, its airport-focused roads should be given a boost.

Morgans is positive on Transurban. It believes the company will benefit from employment and population growth, urbanisation, and the value of time. It has an add rating and $14.57 price target on its shares.

As for dividends, the broker is forecasting dividends per share of 35 cents in FY 2022 and then 55.3 cents in FY 2023. Based on the current Transurban share price of $12.85, this implies yields of 2.7% and 4.3%, respectively.

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 Elders 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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