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

Here are two dividend shares rated as buys…

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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:

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.

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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.

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