2 excellent ASX dividend shares given buy ratings

These dividend shares are expected to provide generous fully franked yields…

| More on:
A smiling woman with a handful of $100 notes, indicating strong dividend payment by Thorn Group

Image source: Getty Images

With low interest rates likely to be here for some time to come, it certainly is a difficult time for income investors.

While this is disappointing, investors need not worry. This is because there are plenty of ASX dividend shares that can help you overcome low rates. Two to look at are listed below:

Accent Group Ltd (ASX: AX1)

Accent is a retail group with a collection of popular footwear-focused store brands. These include stores such as Glue Store, HYPEDC, Platypus, Sneaker Lab, Stylerunner, and The Athlete’s Foot.

But it may not stop there. Accent isn’t afraid to test the waters with new ideas and has recently launched another new store brand called 4 Workers. Based on past launches, if this is a success management is likely to throw capital behind the brand and expand its store network over the coming years. 

This strategy has been a major success over the last decade and has underpinned solid earnings and dividend growth.

One broker that expects this positive form to continue is Bell Potter. It currently has a buy rating and $3.30 price target on its shares. The broker is also forecasting dividends of 11.7 cents per share in FY 2021 and 12.3 cents per share in FY 2022.

Based on the latest Accent share price of $2.73, this represents fully franked yields of 4.3% and 4.5%, respectively.

Suncorp Group Ltd (ASX: SUN)

Another dividend share to look at is Suncorp. Like Accent, it works through a number of leading brands such as AAMI, Apia, Bingle, GIO, Shannons, Vero, and the eponymous Suncorp brand. For over a century the company has been building futures and protecting what matters by offering insurance, banking, and wealth products and services.

During this time Suncorp has built up a significant market position, making it one of the main forces in the industry in Australia. This puts it in a great position to benefit from the industry’s improving trading conditions and positive outlook.

Goldman Sachs is very positive on the company’s future and recently retained its buy rating and lifted its price target to $12.08. It is also forecasting generous dividend payments over the coming years.

Goldman is expecting the company to reward shareholders with fully franked dividends per share of 60 cents in FY 2021, 57 cents in FY 2022, and then 69 cents in FY 2023. Based on the current Suncorp share price of $11.54, this will mean yields of 5.2%, 4.9%, and 6%, 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 no position in any of the stocks mentioned. 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.

More on Dividend Investing