Are you looking to add some top ASX dividend shares to your portfolio? Then you may want to look at the buy-rated ones listed below.
Here’s why they could be top options for income investors next week:
Accent Group Ltd (ASX: AX1)
The first ASX dividend share to look at is Accent. It is a retail group with a growing collection of popular footwear-focused store brands. These include 4 Workers, Glue Store, HYPEDC, Platypus, Sneaker Lab, Stylerunner, and The Athlete’s Foot.
Accent has been performing very strongly this year. This is being driven by the popularity of its brands, a favourable shift in consumer spending, strong online sales, and its store network expansion.
The good news is that the team at Bell Potter believe the company still has plenty of growth ahead of it. In light of this, it is recommending Accent as a buy with a $3.30 price target.
As for dividends, Bell Potter is forecasting fully franked dividends of 11.7 cents per share in FY 2021 and then 12.3 cents per share in FY 2022. Based on the latest Accent share price of $2.54, this represents fully franked yields of 4.6% and 4.8%, respectively, over the next couple of years.
Fortescue Metals Group Limited (ASX: FMG)
Another ASX dividend share to look at is this leading iron ore producer. This is because it is currently benefiting greatly from very strong prices for the steel making ingredient.
For example, at the end of last week the spot iron ore price was fetching over ~US$200 a tonne. And while Fortescue’s lower grade product trades at a discount to the benchmark iron ore price, it is still materially more than Fortescue’s cash cost guidance of US$13.50 to US$14.00 per wet metric tonne.
One broker that is positive on the mining giant is Macquarie. It is expecting the company to generate significant free cash flow in the near term, leading to very big dividends.
Macquarie is forecasting fully franked dividends of $3.45 per share in FY 2021 and then $2.45 per share in FY 2022. Based on the latest Fortescue share price of $25.25, this will mean fully franked yields of 13.6% and 9.7%, respectively.
Macquarie has an outperform rating and $27.00 price target on the miner’s shares.