If you're an income investor searching for new dividend shares to buy, it could be worth checking out the two listed below.
Here's why they are rated as buys right now:
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Adairs Ltd (ASX: ADH)
The first ASX dividend share that could be a buy is Adairs. It is the leading furniture and homewares retailer behind the Focus on Furniture, Mocka, and eponymous Adairs brands.
The retailer is having a bit of a tough time this year and is expected to post a sharp decline in profits in FY 2022. This has been driven by significant COVID related disruptions across its operations.
However, management remains positive on the future. It highlights that "these [disruptions] should not be recurring in the medium term and the underlying business continues to perform well."
This view is shared with the analysts at Wilson, which have an overweight rating and $4.50 price target on the company's shares.
In addition, the broker is forecasting fully franked dividends per share of 19 cents per share in FY 2022 and 31 cents per share in FY 2023. Based on the current Adairs share price of $2.48, this will mean yields of 7.7% and 12.5%, respectively.
Westpac Banking Corp (ASX: WBC)
Another ASX dividend share that could be a quality option for income investors next week is banking giant Westpac.
It has recently been tipped as a buy by analysts at Goldman Sachs with a $26.12 price target.
The broker believes Westpac provides strong leverage to rising rates. It expects the bank to benefit from the relative lack of domestic deposit repricing that has been seen to date following recent rates cash rate rises.
As for dividends, the broker is forecasting fully franked dividends per share of 123 cents in FY 2022 and 135 in FY 2023. Based on the current Westpac share price of $21.96, this will mean yields of 5.6% and 6.15%, respectively, over the next two years.
