2 high yield fully franked ASX dividend shares rated as buys

These ASX dividend shares could be in the buy zone…

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Young female investor holding cash ASX retail capital return

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Fortunately, in this low interest rate environment, there are plenty of shares offering investors attractive fully franked dividend yields.

Two dividend shares that are currently rated as buys are listed below. Here’s what you need to know about them:

Adairs Ltd (ASX: ADH)

The first ASX dividend share to look at is Adairs. It is a leading retailer of homewares and home furnishings through both retail stores and online channels.

It has been a very strong performer in FY 2021 thanks to a favourable shift in consumer spending. For example, for the six months ended 31 December, Adairs reported a 34.8% increase in sales to $243 million and a 166% jump in EBIT to $60.2 million.

And while the company is expected to struggle to build on this in FY 2022, analysts at Goldman Sachs expect its growth to resume in FY 2023.

As a result, Goldman currently has a buy rating and $4.80 price target on its shares. It is 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.

Westpac Banking Corp (ASX: WBC)

Another ASX dividend share to consider is Westpac. If you don’t already have exposure to the banking sector, it has been tipped as a great way to achieve this.

Analysts at Citi currently have a buy rating and $30.00 price target on its shares. This compares to the latest Westpac share price of $24.69.

Citi is positive on Westpac due to its attractive valuation and cost base targets. The latter sees Westpac aiming to reduce its cost base to $8 billion in the coming years. This compares to its $12.7 billion cost base at present.

The broker is forecasting fully franked dividends of $1.16 per share in FY 2021 and then $1.18 per share in FY 2022. This represents yields of 4.7% and 4.8%, respectively, over the next couple of years.

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Motley Fool contributor James Mickleboro owns shares of Westpac Banking Corporation. 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 has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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