2 ASX dividend shares for income investors to consider

Westpac Banking Corp (ASX:WBC) and this ASX dividend share could be worth considering. Here's what you need to know about them…

If you're looking for some top ASX dividend shares to add to your income portfolio, then you might want to look at the ones listed below.

Here's what income investors need to know about them:

ASX dividend shares represented by cash in jeans back pocket

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Carsales.Com Ltd (ASX: CAR)

This auto listings company could be an ASX dividend share to consider buying.

Carsales is the dominant force in the ANZ market and has a number of growing operations across the world. It is also planning to expand into the US market with the acquisition of Trader Interactive.

This acquisition appears to have gone down well with analysts at Morgans. The broker has recently put an add rating and $20.82 price target on the company's shares.

Morgans is also forecasting dividends of 56 cents per share in FY 2021 and 59 cents per share in FY 2022. Based on the current Carsales share price of $19.09, this will mean fully franked yields of 2.9% and 3.1%, respectively.

Westpac Banking Corp (ASX: WBC)

If you haven't got exposure to the banking sector, then it could be worth considering Westpac.

Australia's oldest bank has well and truly returned to form since the height of the pandemic. For example, during the first half of FY 2021, the bank reported cash earnings of $3,537 million. This was a 256% increase over the prior corresponding period and a 119% lift over the second half of FY 2020.

In light of its strong form, the Westpac board declared a fully franked interim dividend of 58 cents per share.

One broker that expects the dividends to continue to increase is Morgan Stanley. It is forecasting fully franked dividends per share of $1.18 and $1.25 over the next two years. Based on the latest Westpac share price of $26.09, this will mean yields of 4.5% and 4.8%.

Morgan Stanley has an overweight rating and $29.20 price target on the bank's shares.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended carsales.com Limited. 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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