Goldman Sachs names 2 growing ASX dividend shares to buy

Here's why Goldman Sachs thinks you should be buying Coles Group Ltd (ASX:COL) and this growing ASX dividend share…

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If you're an income investor on the lookout for dividends that could grow strongly in the future, then you might want to take a look at the shares listed below.

Here's why they could be worth considering:

Bravura Solutions Ltd (ASX: BVS)

Bravura Solutions is the financial technology company behind the Sonata wealth management platform. This popular platform allows financial advisers to connect and engage with clients via computers or smart devices.

In addition to this, the company has been bolstering its offering with a number of key acquisitions in recent years. This includes the addition of FinoCamp, Midwinter, and Delta Financial Systems.

FinoCamp builds unique and highly flexible software that supports the UK wealth market, Midwinter is a financial planning software provider, and Delta Financial Systems provides technology to power complex pensions administration in the UK market.

FY 2021 looks set to be a very challenging year because of the pandemic and Brexit. However, analysts at Goldman Sachs think investors should look beyond this short term weakness and focus on its strong long term growth potential.

The broker currently has a buy rating and $4.50 price target on its shares. It is also forecasting dividends of ~10.6 cents per share, ~12.4 cents per share, and ~14.4 cents per share over the next three years. This represents yields of 3.5%, 4.1%, and 4.7%, respectively.

Coles Group Ltd (ASX: COL)

This supermarket giant is another ASX share which has been tipped to grow its dividend at a solid rate in the coming years.

This is thanks to its defensive qualities, focus on automation, cost cutting, and growing own brand sales.

Goldman Sachs is also very positive on Coles and currently has a buy rating and $21.10 price target on its shares.

The broker is forecasting dividends of 64 cents per share, 68 cents per share, and 76 cents per share over the next three years. Based on the current Coles share price of $18.30, this represents fully franked yields of 3.5%, 3.7%, and 4.15%, respectively.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Bravura Solutions Ltd. The Motley Fool Australia owns shares of COLESGROUP DEF SET. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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