If you're looking for dividend shares to buy, then you may want to look at the two below that have been given buy ratings by the team at Morgans.
Here's why the broker rates them as buys:
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Baby Bunting Group Ltd (ASX: BBN)
Baby Bunting could be a dividend share to buy according to the team at Morgans.
As the only national specialty retailer of maternity and baby goods, the broker believes Baby Bunting is well placed to take market share away from non-specialist competitors such as department stores and to build its presence online.
It also sees the company's recent entry into New Zealand as an extra growth driver and potentially even a template for further geographic expansion in the future.
In light of this, the broker is forecasting solid earnings and dividend growth over the coming years. In respect to the latter, Morgans has pencilled in fully franked dividends per share of 15 cents in FY 2022 and 19 cents in FY 2023. Based on the current Baby Bunting share price of $5.34, this implies yields of 2.8% and 3.6%.
Morgans has an add rating and $6.20 price target on its shares.
Telstra Corporation Ltd (ASX: TLS)
Another ASX dividend share that could be in the buy zone is telco giant Telstra. Especially with its outlook now arguably the best it has been in a decade.
This is due to the success of its transformational T22 strategy and the exciting new T25 strategy that will replace it later this year. Management expects the latter to drive solid growth in the coming years. This potentially puts Telstra in a position to increase its dividend for the first time in many years.
Morgans is also very positive on Telstra. It notes that industry dynamics have turned positive and believes the sum of the parts is worth more than the current share price. The broker currently has an add rating and $4.56 price target on its shares.
In respect to dividends, Morgans is forecasting fully franked dividends per share of 16 cents in FY 2022 and FY 2023. Based on the current Telstra share price of $4.08, this will mean yields of 3.9% for investors.
