Analysts say these ASX dividend shares are buys

These ASX dividend shares could be buy according to analysts…

| More on:
A couple sits in their lounge room with a large piggy bank on the coffee table. They smile while the male partner feeds some money into the slot while the female partner looks on with an iPad style device in her hands as though they are budgeting.

Image source: Getty Images

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 wanting to boost your income with some dividend shares, then you might want to consider the two listed below.

Here's what you need to know about these dividend shares:

Accent Group Ltd (ASX: AX1)

The first ASX dividend share for investors to look at is footwear retailer Accent.

After a very tough time in FY 2022, Accent appears to be back on track this year. Its recent full year results release revealed that like for likes sales were up strongly during the early stages of FY 2023.

The team at Bell Potter remain very positive on the company and recently put a buy rating and $2.00 price target on its shares. It commented:

The first 7 weeks of FY23 has seen positive like-for-like (LFL) sales +18.9% vs the -16% LFL sales growth for the same period in FY22 and -13% for 1H22. The company's focus on achieving full gross margins was encouraging as the company executes on a disciplined growth strategy to sustain earnings growth.

Bell Potter is also forecasting some attractive dividend yields in the coming years. It is expecting fully franked dividends of 9.5 cents per share in FY 2023 and 12.7 cents per share in FY 2024. Based on the current Accent share price of $1.43, this would mean yields of 6.6% and 8.8%, respectively, over the next couple of years.

Harvey Norman Holdings Limited (ASX: HVN)

Another ASX dividend share that could be in the buy zone is fellow retailer Harvey Norman.

Analysts at Goldman Sachs rate the company highly and have named it as a buy recently with a $4.80 price target. The broker continues to believe that Harvey Norman is well-placed to defend its strong market position from online disruption thanks to its favourable customer demographics. It expects this to support stronger than consensus earnings in FY 2023. Goldman explained:

Our FY23 NPAT is +7% vs FactSet consensus and our TP implied ex-property FY24E P/E of ~5x with dividend yield of 8%. We believe that HVN offers 21% TSR at an attractive valuation; reiterate buy.

Another positive is that the broker expects Harvey Norman to provide investors with generous dividends in the near term. It is forecasting fully franked dividends per share of 38 cents in FY 2023 and 32 cents in FY 2024. Based on the current Harvey Norman share price of $4.42, this will mean yields of 8.6% and 7.2%, 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 positions in and has recommended Harvey Norman Holdings Ltd. The Motley Fool Australia has positions in and has recommended Harvey Norman Holdings Ltd. 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 Scott Phillips.

More on Dividend Investing

Man holding a calculator with Australian dollar notes, symbolising dividends.
Dividend Investing

These buy-rated ASX dividend shares offer 5% to 7% yields

Here are four options for income investors to consider right now according to analysts.

Read more »

Man smiling at a laptop because of a rising share price.
Dividend Investing

2 must-have ASX shares to buy for dividend income investors

These two stocks offer a lot of what investors may want.

Read more »

A man holding a cup of coffee puts his thumb up and smiles while at laptop.
Dividend Investing

The smartest ASX dividend stocks to buy with $5,000 right now

These stocks could be smart buys for income investors according to brokers.

Read more »

A couple makes silly chip moustache faces and take a selfie on their phone.
Dividend Investing

2 ASX dividend stocks to buy for immediate passive income

I think these two stocks are some of the ASX's best bets for income right now.

Read more »

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

These buy-rated ASX dividend stocks offer 4%, 5%, and 8% yields

Let's see which stocks brokers have named as buys for income investors.

Read more »

executive in shirt and tie holding chin in hand looking disappointed because of slashed dividend payouts
Bank Shares

Is a dividend cut coming for ANZ shares?

ANZ's high dividend yield might not last...

Read more »

Woman looking at prices for televisions in an electronics store.
Dividend Investing

3 ASX dividend shares with surprisingly large yields today

These stocks have yields that might shock you.

Read more »

Middle age caucasian man smiling confident drinking coffee at home.
Dividend Investing

Brokers say these ASX dividend shares are top buys

These shares have been given the thumbs up by analysts.

Read more »