2 buy-rated ASX dividend shares with massive yields

Check out these dividend shares with huge forecast yields…

| More on:
boy giving thumbs up to $100 notes

Image source: Getty Images

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:

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.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

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 recommended ADAIRS FPO. The Motley Fool Australia owns shares of and has recommended ADAIRS FPO. The Motley Fool Australia has recommended Aurizon Holdings Limited. 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