2 ASX dividend shares analysts rate as buys

These shares will send you a regular pay check…

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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:

A man happily kisses a $50 note scrunched up in his hands representing the best ASX dividend stocks in Australia today

Image source: Getty Images

Coles Group Ltd (ASX: COL)

The first ASX dividend share for income investors to consider is Coles.

It is of course one of the "big two" supermarket operators in the ANZ market. It also has a number of complementary businesses such as flybuys and Liquorland.

Due to the strength of its businesses and their positive long term outlooks, Coles has been tipped as an ASX share to buy. Especially for income investors due to its attractive yield and favourable dividend policy.

Goldman Sachs is very positive on the company and is forecasting generous dividend payments in the coming years. Its analysts currently expect dividends per share of 62 cents in FY 2021 and 66 cents in FY 2022.

Based on the current Coles share price of $16.60, this will mean fully franked yields of 3.7% and 4%, respectively, over the next two years. Goldman has a buy rating and $20.50 price target on its shares.

Transurban Group (ASX: TCL)

Another ASX dividend share to look at this toll road operator. Transurban is the owner of a collection of important roads in Australia and North America. These include CityLink in Melbourne and the Cross City Tunnel and Eastern Distributor in Sydney.

While lockdowns and travel disruption have led to a notable decline in traffic on its roads over the last 12 months, volumes are recovering and are expected to continue doing so as life returns to normal.

The good news for income investors is that this should mean that its distributions return to normal soon after as well. That's certainly what Ord Minnett is expecting. It is positive on Transurban and currently has a buy rating and $16.00 price target on its shares.

Ord Minnett 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 equates to yields of 2.6% and 4.1%, respectively, over the next two years.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET and Transurban 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

A large clear wine glass on the left of the image filled with fifty dollar notes on a timber table with a wine cellar or cabinet with bottles in the background.
Dividend Investing

How many Fortescue shares do I need to buy for $10,000 a year in passive income?

Fortescue shares have a long track record of twice-yearly passive income payments.

Read more »

A woman has a thoughtful look on her face as she studies a fan of Australian 20 dollar bills she is holding on one hand while he rest her other hand on her chin in thought.
Dividend Investing

How much could a $500,000 ASX share portfolio pay in dividends?

A sizeable portfolio combined with reliable dividend shares can produce meaningful income.

Read more »

Person holding Australian dollar notes, symbolising dividends.
Dividend Investing

Morgans names 2 ASX dividend shares to buy now

The broker is expecting some attractive dividend yields from these buy-rated shares.

Read more »

Close up of woman using calculator and laptop for calculating dividends.
Dividend Investing

1 cheap Australian dividend stock down 25% to buy and hold

Every so often a reliable business falls out of favour and the income potential starts to look attractive.

Read more »

A smiling woman with a handful of $100 notes, indicating strong dividend payments
Dividend Investing

26 ASX shares with ex-dividend dates next week

In order to receive a dividend, you must own the ASX share before its ex-dividend date.

Read more »

A group of businesspeople clapping.
Dividend Investing

My 3 best ASX dividend-focused stocks to buy in March

Dividend investors on the ASX have plenty of options, but some businesses stand out for their reliability.

Read more »

Australian dollar notes in the pocket of a man's jeans, symbolising dividends.
Dividend Investing

How many Qantas shares do I need to buy for a $10,000 annual passive income?

Qantas shares resumed their passive income payouts in 2025.

Read more »

Hand holding Australian dollar (AUD) bills, symbolising ex dividend day. Passive income.
Dividend Investing

Buy this ASX 200 stock for an 11% dividend yield in 2026 and 2027: Morgans

Morgans thinks a turnaround could be starting for this beaten down stock.

Read more »