Are you looking to buy some dividend shares next week? Then listed below are two shares that might be worth considering.
Here's what you need to know about them:
Accent Group Ltd (ASX: AX1)
Accent is a leading footwear-focused retailer that owns a number of retail store brands such as HYPE DC, Platypus, The Athlete's Foot, and Sneaker Lab. It has also just launched a couple of new brands, Australian Stylerunner and Pivot. This is part of its store expansion plan, which is aiming to add ~80 new stores in FY 2021.
The company has been a very positive performer over the last 12 months despite the pandemic. In November Accent held its annual general meeting and revealed that its sales for the first 20 weeks of FY 2021 were well ahead of its expectations. Excluding its Auckland and Victorian stores, Accent's like for like sales were up 15.7% over the period. Its online sales were even stronger thanks to the shift to online shopping. It reported a 129% increase in sales compared to the same period last year.
Analysts at Morgan Stanley expect the company to pay a fully franked dividend of 9.4 cents per share in FY 2021. Based on the latest Accent share price, this represents a 4% dividend yield.
Coles Group Ltd (ASX: COL)
Another dividend share to look at is Coles. This supermarket operator has been performing very positively this year. The company delivered a 6.9% increase in sales to $37.4 billion in FY 2020 and has followed this up with further strong growth in the first quarter of FY 2021.
During the three months that ended 30 September, Coles reported an impressive 10.5% increase in total sales over the prior corresponding period to $9.6 billion.
Goldman Sachs believes this has put the company in a position to deliver a strong result in FY 2021. So much so, the broker has put a buy rating and $20.50 price target on its shares and is forecasting a fully franked 64 cents per share dividend. Based on the latest Coles share price, the latter equates to a 3.5% yield.
