2 quality ASX dividend shares for income investors next week

Transurban Group (ASX:TCL) and this ASX dividend share could be quality options for income investors next week. Here’s why…

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If you’re looking to boost your income with some dividend shares, then you might want to consider the ones listed below.

Here’s why analysts have given them buy ratings:

Super Retail Group Ltd (ASX: SUL)

The first ASX dividend share to look at is Super Retail. It is the retail conglomerate behind popular brands BCF, Macpac, Rebel, and Super Cheap Auto.

Super Retail has been a big winner from the redirection in consumer spending during the pandemic due to no international travel. And with international travel off the cards for some time to come, it appears well-placed to continue to benefit from higher than normal demand across its brands.

This was evident in its recent trading update, which revealed that its growth has accelerated since the end of the first half. Super Retail reported like-for-like sales up 28% over the first 44 weeks of FY 2021. Positively, management also revealed that its gross margin had remained steady since the end of the half.

Goldman Sachs sees a lot of value in its shares and is expecting a generous dividend in FY 2021. It has a buy rating and $15.00 price target and is forecasting an 84 cents per share fully franked dividend. Based on the current Super Retail share price of $12.04, this represents a 7% yield.

Transurban Group (ASX: TCL)

Another ASX dividend share to consider is Transurban. It is one of the world’s leading toll road operators.

While the pandemic has impacted traffic volumes, particularly on roads connecting to airports, there has been a notable improvement over recent months. This is likely to continue improving as vaccines rollout and people become more mobile again.

Ord Minnett appears to believe this will be the case and expects its distribution to rebound strongly in FY 2022. It is forecasting dividends of 37 cents per share in FY 2021 and then 58 cents per share in FY 2022. Based on the latest Transurban share price of $14.00, this will mean forward yields of 2.6% and 4.15%, respectively.

The broker has a buy rating and $16.00 price target on the company’s 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 Super Retail Group Limited. The Motley Fool Australia owns shares of Transurban Group. 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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