These growing ASX dividend shares are buys: analysts

These dividend shares have been named as buys…

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Looking for dividend shares to buy? Listed below are two ASX dividend shares that analysts rate as buys.

Here's why they are bullish on these dividend shares:

Adairs Ltd (ASX: ADH)

The first ASX dividend share to look at is this furniture and homewares retailer.

Its shares have been hammered this year and have lost over 40% of their value. While this is disappointing, Goldman Sachs believes it has created a buying opportunity and has put a buy rating and $2.65 price target on the company's shares.

Its analysts believe the market is being too negative on Adairs' outlook. It notes that "the market is pricing in EBIT that is 11-21% below the guidance range, and 12% below GSe." It also highlights that it views "the core Adairs business as resilient in the current environment and do not believe the c.40% discount to discretionary retail peers is justified."

Goldman is forecasting fully franked dividends per share of 17 cents in FY 2023 and 20 cents in FY 2024. Based on the latest Adairs share price of $2.22, this will mean yields of 7.7% and 9%, respectively.

Rural Funds Group (ASX: RFF)

Another ASX dividend share to consider is this Australian agricultural property company.

Its shares have also taken a tumble in 2022, which has caught the eye of analysts at Bell Potter.

The broker recently upgraded Rural Funds' shares to a buy rating with a $2.75 price target on the belief that this share price weakness has created a buying opportunity. Bell Potter notes that "the current discount to adjusted NAV reflects what historically would be considered an attractive entry point."

In addition, the broker is expecting Rural Funds' dividend to continue growing in the coming years.

It is forecasting an 11.7 cents per share dividend in FY 2023 and then a 12.7 cents per share dividend in FY 2024. Based on the current Rural Funds share price of $2.57, this represents yields of 4.55% and 5%, 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 ADAIRS FPO. The Motley Fool Australia has positions in and has recommended ADAIRS FPO and RURALFUNDS STAPLED. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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