Looking for dividend shares to buy next week? Then you might want to take a look at the ones listed below.
Here’s why they could be in the buy zone right now:
Coles Group Ltd (ASX: COL)
The first ASX dividend share to look at is this supermarket giant. As was widely expected, last month Coles released its half year results and revealed solid growth in both its sales and profits.
Thanks to solid growth across its business, for the six months ended 31 December, the company posted an 8% increase in revenue to $20,569 million and a 14.5% lift in half year net profit to $560 million.
And while the second half will certainly be harder for Coles due to the fact that it is about to cycle the panic buying from a year earlier, it is still expected to deliver full year growth in sales, earnings, and dividends.
This could make it worth considering, especially after the recent pullback in the Coles share price.
Goldman Sachs certainly sees value in its shares at the current level. The broker has a buy rating and $20.70 price target on its shares. It is also forecasting a 62 cents per share fully franked dividend for FY 2021.
Based on the current Coles share price of $15.50, this represents a 4% dividend yield.
Telstra Corporation Ltd (ASX: TLS)
Another ASX dividend share that Goldman Sachs thinks is in the buy zone is Telstra. Its analysts were pleased with its half year results and management’s comments on the future.
In case you missed it, Telstra’s CEO, Andy Penn, has set an aspirational target for mid to high single-digit growth in underlying EBITDA in FY 2022 and then further growth in FY 2023.
In addition to this, the Telstra board maintained the telco giant’s interim dividend and plans to do the same with its full year dividend. This will mean a fully franked dividend of 16 cents per share in FY 2021. Based on the current Telstra share price of $3.10, this equates to a fully franked 5.15% dividend yield.
Goldman Sachs has a buy rating and $4.00 price target on its shares.
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Returns As of 15th February 2021
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. 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.