Why Telstra (ASX:TLS) and this dividend share could be buys

Here are two dividend shares rated as buys…

| 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

Are you looking for some quality ASX dividend shares to add to your income portfolio this week?

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

Cutout icon of a lightbulb surrounded by 3 hands holding out gold coins

Image source: Getty Images

Accent Group Ltd (ASX: AX1)

The first ASX dividend share to look at is Accent Group. It is a growing retail conglomerate with a focus on the leisure footwear market.

Among Accent's portfolio of brands are HYPE DC, Platypus, Sneaker Lab, Stylerunner, and The Athlete's Foot. It has also just acquired Glue Store and launched the 4workers brand, which sells tradie clothing and footwear.

Accent has been growing at a consistently solid rate in recent years and appears well-placed to continue this trend. This is thanks to its strong market position, exclusive brands, and store expansion plans.

Bell Potter is confident its growth will continue and expects this to lead to increasing dividends. It is forecasting dividends per share of 11.7 cents in FY 2021 and then 12.3 cents in FY 2022.

Based on the current Accent share price of $2.66, this will mean fully franked yields of 4.4% and 4.6%, respectively. Bell Potter currently has a buy rating and $3.30 price target on the company's shares.

Telstra Corporation Ltd (ASX: TLS)

Another ASX dividend share to look at is Telstra. It has been tipped as a dividend share to buy by a large number of brokers. This is due to its increasingly positive outlook thanks to its leadership position with 5G, cost cutting, its corporate restructure and asset monetisation plans, and rational competition.

One of those brokers is Goldman Sachs. It believes that Telstra is well-placed to maintain its current 16 cents per share fully franked dividend until FY 2023, after which it is forecasting an increase to 18 cents per share in FY 2024.

With the Telstra share price currently fetching $3.73, this will mean yields of 4.3% until FY 2023 and then 4.8% a year later. Goldman Sachs currently has a buy rating and $4.20 price target on the company's shares.

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

More on Dividend Investing

View of a business man's hand passing a $100 note to another with a bank in the background.
Bank Shares

New ANZ dividend: Here's everything you need to know

ANZ's new dividend has just been revealed.

Read more »

A man points at a paper as he holds an alarm clock, indicating the ex-dividend date is approaching.
Dividend Investing

16 ASX shares going ex-dividend in May

Newmont is among the ASX shares to go ex-dividend this month.

Read more »

Man holding fifty Australian Dollar banknotes in his hands, symbolising dividends.
Dividend Investing

3 star ASX dividend income stocks for the rest of 2026

I rate these businesses as strong income buys.

Read more »

Children skipping and jumping up a hill.
Dividend Investing

Want passive income? These ASX dividend shares offer 5%+ yields

These companies grow their payouts over time.

Read more »

A golden egg with dividend cash flying out of it
Dividend Investing

These ASX dividend shares keep giving investors a pay rise

I think these businesses are excellent options for regular payout growth.

Read more »

A graphic of a pink rocket taking off above an increasing chart.
Dividend Investing

$1,000 buys 23 shares in an incredibly reliable ASX 200 dividend stock

This business offers incredible reliability with dividends.

Read more »

A happy elderly man wearing a red cape smiles as he jumps up like a hero from a massage table.
Dividend Investing

3 ASX dividend stocks I'd buy if I were a retiree

Reliable dividends often come from predictable demand. These three stocks highlight where that stability can be found.

Read more »

Beautiful young couple enjoying in shopping, symbolising passive income.
Dividend Investing

3 ASX dividend shares to build a passive income

Looking for passive income? These shares have been named as buys by analysts.

Read more »