Are you looking for some dividend shares to boost your income portfolio? If you are, then you might want to look at the ones listed below.
Here's why these ASX dividend shares could be in the buy zone:
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Adairs Ltd (ASX: ADH)
Adairs is a leading retailer of homewares and home furnishings in Australia and New Zealand through both retail stores and online channels.
It has been in fine form in FY 2021 thanks to heightened sales during the pandemic. As a result, it looks set to deliver bumper full year profit growth next month. And while it will be very hard for Adairs to build on this in FY 2022, it has been tipped by Goldman Sachs to resume its growth again in FY 2023.
This is thanks to its strong market position and omni-channel footprint, which gives it exposure to both online and in-store growth. The broker also sees upside in average order value compared with peers in the home category.
Goldman currently has a buy rating and $4.80 price target on its shares. It is also forecasting fully franked dividends per share of 26 cents in FY 2021, 25.1 cents in FY 2022, and then 26.8 cents in FY 2023.
Based on the current Adairs share price of $3.75, this will mean yields of 6.9%, 6.7%, and 7.15%, respectively.
Aurizon Holdings Ltd (ASX: AZJ)
Another ASX dividend share to look at is Aurizon. It is Australia's largest rail freight operator, transporting more than 250 million tonnes of Australian commodities each year.
It has been tipped as a share to buy by the analysts at Macquarie. They currently have an outperform rating and $4.32 price target on its shares. This compares to the latest Aurizon share price of $3.84.
Macquarie believes the company is well-placed with almost $1 billion in balance sheet capacity to drive its growth through acquisitions. It has suggested that grain companies with port and logistics assets could be good additions.
In the meantime, Macquarie is forecasting partially franked dividends of 27.8 cents per share in FY 2021 and then 28.6 cents per share in FY 2022. This represents very attractive yields of 7.2% and 7.45%, respectively.
