2 growing ASX dividend shares for income investors

Coles Group Ltd (ASX:COL) and this growing ASX dividend share could be top options for income investors right now…

| More on:
fingers walking up piles of coins towards bag of cash signifying asx dividend shares

Image source: Getty Images

One positive in this low interest rate environment is that the Australian share market is not short of options for income investors.

For example, the two ASX dividend shares listed below are all expected to provide generous yields to investors in 2021. Here’s why they could be top options for income investors:

Accent Group Ltd (ASX: AX1)

While the name Accent may not be familiar, the brands that it owns certainly will be. Accent is the retail conglomerate behind footwear brands including HypeDc, Platypus, and The Athlete’s Foot.

It has been growing its earnings and dividends at a strong rate in recent years and has been tipped to continue doing so in the years to come.

According to a note out of Bell Potter, its analysts have pencilled in dividends per share of 11.9 cents in FY 2021, 12.2 cents in FY 2022, and 12.9 cents in FY 2023. Based on the latest Accent share price, this equates to fully franked yields of 4.6%, 4.7%, and 5%.

Bell Potter currently has a buy rating and $2.65 price target on the company’s shares.

Coles Group Ltd (ASX: COL)

Another option to consider is Coles. It is of course one of the “big two” supermarket operators in Australia. It also has convenience and liquor stores.

Due to its strong market position, growing own brand offering, and focus on automation, the supermarket giant has been tipped to grow at a solid rate long into the future.

As a result, analysts at Goldman Sachs are forecasting dividends per share of 62 cents in FY 2021, 67 cents in FY 2022, and 73 cents in FY 2023. Based on the current Coles share price, this will mean attractive fully franked yields of 3.9%, 4.2%, and 4.6%, respectively, over the coming years.

Goldman Sachs currently has a buy rating and $20.70 price target on its shares. 

These Dividend Stocks Could Be Your Next Cash Kings (FREE REPORT)

Motley Fool Australia's Dividend experts recently released a brand-new FREE report revealing 3 dividend stocks with JUICY franked dividends that could keep paying you meaty dividends for years to come.

Our team of investors think these 3 dividend stocks should be a 'must consider' for any savvy dividend investor. But more importantly, could potentially make Australian investors a heap of passive income.

Don't miss out! Simply click the link below to grab your free copy and discover these 3 high conviction stocks now.

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 COLESGROUP DEF SET. The Motley Fool Australia has recommended Accent Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Dividend Investing