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2 excellent ASX dividend shares to buy today

man handing over wad of cash representing ASX retail capital return
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With interest rates likely to remain low for some time to come, the dividend shares listed below could be top options for anyone seeking a passive income stream.

Here’s why these dividend shares are rated as buys:

Coles Group Ltd (ASX: COL)

This supermarket operator has been on form in FY 2021 after benefiting greatly from a shift in consumer behaviour caused by the pandemic.

And while trading conditions are now normalising, Coles remains well-placed for long term growth thanks to its strong market position, Refreshed Strategy, and focus on automation.

This should put the company in a position to continue growing its earnings and dividend at a solid rate over the 2020s.

One broker that believes the Coles share price is in the buy zone is Goldman Sachs. Its analysts currently have a buy rating and $20.70 price target on its shares.

Goldman is also forecasting a 62 cents per share dividend in FY 2021. Based on the current Coles share price of $15.87, this represents a fully franked 3.9% yield.

Westpac Banking Corp (ASX: WBC)

Another ASX dividend share to consider is Westpac. Although the banking giant’s shares have just hit a 52-week high, it isn’t too late for income investors to snap them up.

For example, analysts at Morgans currently have an add rating and $27.50 price target on the bank’s shares. This compares to the latest Westpac share price of $25.16.

But even better, is that the broker is forecasting dividends of $1.32 per share in FY 2021 and then $1.43 per share in FY 2022. This represents very attractive fully franked yields of 5.2% and 5.6%, respectively, over the next couple of years.

Another positive is that due to its very strong capital position, there is speculation that it could return funds to shareholders via capital management initiatives in FY 2022. This could mean special dividends or share buybacks.

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Returns As of 15th February 2021

Motley Fool contributor James Mickleboro owns shares of Westpac Banking. 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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