2 top ASX dividend shares rated as buys

National Australia Bank Ltd (ASX:NAB) and this ASX dividend share could be excellent options for income investors. Here’s why…

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Are you looking for some excellent ASX dividend shares to add to your income portfolio? 

Then you might want to take a look at the ones listed below. Here’s what you need to know about these dividend shares:

Accent Group Ltd (ASX: AX1)

The first ASX dividend share to look at is Accent Group. This retail conglomerate is primarily focused on the footwear market and owns a number of popular store brands. Among its portfolio are retailers HypeDC, Platypus, and The Athlete’s Foot.

Accent has been growing its earnings and dividends at a solid rate in recent years. This has been driven by a combination of new store brand launches, the expansion of its existing footprint, and strong sales in-store and online.

This strong form has continued in FY 2021, with Accent reporting a 6.6% increase in first half sales to $541.3 million and a 57.3% increase in net profit after tax to $52.8 million. And thanks to its growth accelerating in the third quarter, it looks set to deliver a bumper full year result in August.

Bell Potter is a big fan of the company and has a buy rating and $3.30 price target on its shares.

The broker is also forecasting an 11.7 cents per share dividend in FY 2021 and a 12.3 cents per share dividend in FY 2022. Based on the current Accent share price of $2.58, this will mean a fully franked yields of 4.5% and 4.6%, respectively.

National Australia Bank Ltd (ASX: NAB)

Another ASX dividend share to consider is NAB. It could be a good option if your portfolio doesn’t already have exposure to the banking sector.

Especially given the favourable outlook for the sector right now thanks to Australia’s strong economic recovery and the booming housing market.

Furthermore, although its shares have been strong performers in 2021, they have been tipped to climb higher.  According to a note out of Goldman Sachs, its analysts have a conviction buy rating and $29.97 price target on the bank’s shares.

Goldman notes that NAB remains its preferred sector exposure due to its cost management initiatives, its position as the largest business bank, and its strong capital position.

The broker is forecasting fully franked dividends of 124 cents per share and 133 cents per share in FY 2021 and FY 2022, respectively. Based on the current NAB share price of $26.37, this will mean yields of 4.7% and 5.1%.

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*Returns as of January 12th 2022

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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.

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