Broker names 2 quality ASX dividend shares to buy

These dividend shares have been named 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

If you're looking for dividend shares with attractive yields, then you may want to look at the ones listed below.

Here's why analysts at Bell Potter rate these dividend shares as buys:

Woman holding $100 Australian notes representing dividends.

Image source: Getty Images

Accent Group Ltd (ASX: AX1)

The first ASX dividend share to look at is this footwear focused retailer. It is the company behind a growing collection of popular retail brands. These include HYPEDC, Platypus, Stylerunner, and The Athlete's Foot.

Accent's shares have been hit hard this year due to COVID lockdowns impacting its profits materially and concerns over sports giants Adidas and Nike focusing on growing their direct to consumer businesses.

The team at Bell Potter isn't concerned, though, and continues to forecast a strong sales and profit rebound in FY 2023. In light of this, its analysts believe recent share price weakness is a buying opportunity.

Last month Bell Potter put a buy rating and $2.75 price target on the company's shares. As for dividends, it is expecting fully franked dividends per share of 5.8 cents in FY 2022 and then 10.9 cents in FY 2023.

Based on the current Accent share price of $1.67, this will mean yields of 3.5% and 6.5%, respectively.

Commonwealth Bank of Australia (ASX: CBA)

Another ASX dividend share for investors to consider is banking giant, CBA.

The team at Bell Potter believe Australia's largest bank could be a quality option for income investors. It currently has a buy rating and $108.00 price target on the bank's shares.

The broker is positive on CBA due to its strategic strengths of scale, brand, and diversification, which are supported by an irreplaceable infrastructure comprising over 1,100 branches, 3,800 Australia Post agencies, and nearly 3,600 ATMs.

Bell Potter appears confident this will support solid dividend growth over the coming years. For example, the broker has pencilled in fully franked dividends per share of $3.87 in FY 2022 and $4.07 in FY 2023. Based on the current CBA share price of $105.70, this will mean yields of 3.7% and 3.85%, 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 Accent 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

Smiling woman with her head and arm on a desk holding $100 notes, symbolising dividends.
Dividend Investing

I'd buy 22,166 shares of this ASX stock to aim for $50 a week of passive income

This business is providing investors with consistent and pleasing dividends.

Read more »

A young woman sits with her hand to her chin staring off to the side thinking about her investments.
Dividend Investing

Want to build a second income? I'd buy these ASX shares today

I rate these as fantastic options for dividend income, here’s why…

Read more »

a man wearing casual clothes fans a selection of Australian banknotes over his chin with an excited, widemouthed expression on his face.
Dividend Investing

The easy way to buy ASX dividend shares and build passive income

This could be the easiest way to generate an income from the share market.

Read more »

A fit woman in workout gear flexes her muscles with two bigger people flexing behind her, indicating growth.
Dividend Investing

5 powerhouse ASX dividend shares to buy and hold until 2050

These shares could be the backbone of a strong 'forever' portfolio.

Read more »

Young investor sits at desk looking happy after discovering Westpac's dividend reinvestment plan
Dividend Investing

Forget Westpac shares, I'd buy these ASX dividend stocks

With some bank valuations looking stretched, I’d be looking at these dividend stocks for a more attractive mix of yield…

Read more »

Australian notes and coins symbolising dividends.
Share Market News

2 ASX dividend shares yielding 11% or even more

These ASX dividend-paying shares also offer potential for growth.

Read more »

Small girl giving a fist bump with a piggy bank in front of her.
Dividend Investing

Own ASX IOZ or other iShares ETFs? Here are the dividends you'll get today

BlackRock will pay your dividends today.

Read more »

Man holding Australian dollar notes, symbolising dividends.
Dividend Investing

2 ASX shares with dividend yields above 8%

These stocks can provide significant levels of passive income.

Read more »