Although interest rates are the highest they have been in a long time, investors can still beat the returns on savings accounts easily with ASX dividend shares.
But which shares should you buy for dividends? Two that have recently been rated as buys for investors are listed below. Here's what you need to know about them:
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Baby Bunting Group Ltd (ASX: BBN)
The first ASX dividend share for investors to consider is Baby Bunting.
This baby products retailer has been named as a buy by analysts at Morgans. The broker believes that there are now "brighter horizons" for Baby Bunting after a tough period.
It expects this to underpin fully franked dividends per share of 9.5 cents in FY 2024 and then 12.4 cents in FY 2025. Based on the current Baby Bunting share price of $1.89, this will mean yields of 5% and 6.5%, respectively.
Morgans has an add rating and a $2.50 price target on Baby Bunting's shares.
Deterra Royalties Ltd (ASX: DRR)
Another ASX dividend share for income investors to look at buying is Deterra Royalties.
It is focused on the management and growth of a portfolio of royalty assets across a range of commodities.
Deterra's existing portfolio includes royalties held over its cornerstone asset Mining Area C in the Pilbara region of Western Australia, as well as five smaller royalties including Yoongarillup/Yalyalup, Wonnerup, Eneabba, and St Ives.
The team at Morgan Stanley is positive on the company and has an overweight rating and a $5.65 price target on its shares.
As for dividends, the broker is forecasting fully franked dividends per share of 40 cents in FY 2024 and 30 cents in FY 2025. Based on the current Deterra Royalties share price of $5.24, this will mean yields of 7.6% and 5.7%, respectively.
