2 growing ASX dividend shares for income investors

These dividends are growing at a decent rate…

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happy woman looking at her laptop with notes of money coming out representing financial success and a rising share price and dividend yield

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Are you looking to add some dividend shares to your portfolio? Then take a look at the ones listed below.

Here’s why they could be top options for income investors:

Accent Group Ltd (ASX: AX1)

Accent is a retail group with a collection of popular footwear-focused store brands. These include stores such as HYPEDC, Platypus, Sneaker Lab, Stylerunner, The Athlete’s Foot, and the recently acquired Glue Store. It has also recently launched a new brand called 4 Workers. This brand is targeting the workwear market.

Given the popularity of its brands, its store expansion plans, and favourable trading conditions, Accent has been tipped to continue growing its earnings and dividend in the coming years.

In respect to its dividend, Bell Potter is forecasting dividends of 11.7 cents per share in FY 2021 and 12.3 cents per share in FY 2022. Based on the latest Accent share price of $2.78, this represents fully franked yields of 4.2% and 4.4%, respectively.

Bell Potter currently has a buy rating and $3.30 price target on its shares.

Wesfarmers Ltd (ASX: WES)

Wesfarmers is the conglomerate behind several popular retail brands such as Bunnings and Kmart. It also has a diverse portfolio of industrial businesses.

Thanks to the key Bunnings business, Wesfarmers is on course to record a strong full year result in FY 2021. The hardware giant has been benefiting from the housing market boom and home improvement-related stimulus. This has underpinned stellar sales and profit growth this year.

Analysts at Macquarie appear to believe its growth can continue, leading to increasing dividends in the near term. The broker is forecasting fully franked dividends of $1.74 per share in FY 2021 and $1.76 per share in FY 2022.

Based on the latest Wesfarmers share price of $57.72, this represents attractive yields of 3% and 3.1%, respectively. Macquarie has an outperform rating and $58.12 price target on its shares.

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James Mickleboro does not own any shares mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Wesfarmers Limited. 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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