If you're in the market for some dividend shares, then look no further. Listed below are two highly rated dividend shares that brokers have recently rated as buys.
Here's what you need to know about them:
Image source: Getty Images
Baby Bunting Group Ltd (ASX: BBN)
The first ASX dividend share to consider is Baby Bunting. It is a baby products retailer with a growing presence online and through its expanding store footprint.
The team at Citi is positive on Baby Bunting. It currently has a buy rating and $6.22 price target on its shares.
Citi commented: "We see Baby Bunting well placed to outperform the broader small cap retail sector this year given the non-discretionary nature of its category. While the FY22 PE multiple of 24x (or 29x when adjusted for transformation costs) is not cheap, we forecast a FY21 to FY24 EPS CAGR of 17%, and see growth being driven by i) rollout, ii) ramp up of new stores, iii) margin expansion and iv) penetrating existing categories with low presence. Further, the stocks growth prospects are in some respects less risky than other high multiple retailers who are relying more on new markets and acquisitions."
As for dividends, the broker is forecasting fully franked dividends per share of 16 cents in FY 2022 and 19 cents in FY 2023. Based on the current Baby Bunting share price of $4.82, this will mean yields of 3.3% and 3.9%, respectively.
Bank of Queensland Limited (ASX: BOQ)
Another ASX dividend share for income investors to consider is Bank of Queensland.
Analysts at Morgans believe it could be a top option in the banking sector, particularly given its solid home loan growth and attractive valuation. It has an add rating and $11.00 price target on its shares.
The broker said: "We see exceptional value in Bank of Queensland's stock. The Company has been executing well on its transformation program, it continues to grow its home loan book at above-system levels, we don't expect its NIM to fare worse than the industry-wide trend, and cost synergies associated with the ME Bank acquisition are being realised at a faster rate than originally anticipated."
In respect to dividends, Morgans is forecasting fully franked dividends per share of 48 cents in FY 2022 and then 55 cents per share in FY 2023. Based on the current Bank of Queensland share price of $8.49 this will mean yields of 5.6% and 6.5%, respectively.
