Telstra (ASX:TLS) and this dividend share could be buys

Here’s what analysts think of Telstra and this dividend share…

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Are you looking for dividend shares to boost your income portfolio? If you are, then you may want to look at the ones listed below.

Here’s why these ASX dividend shares are rated as buys:

Accent Group Ltd (ASX: AX1)

The first ASX dividend share to look at is Accent Group. This leisure footwear focused retail group has been a consistently positive performer over the last decade. This has led to very strong returns for investors.

The key drivers of this strong form have been its expanding footprint, the popularity of its store brands, and strong online sales growth. In respect to its store brands, Accent is the name behind brands such as HYPE DC, Platypus, and The Athlete’s Foot.

The team at Bell Potter are confident that there’s still plenty more growth left in the tank. As such it is forecasting dividends per share of 11.7 cents in FY 2021 and then 12.3 cents in FY 2022. Based on the current Accent share price of $2.75, this will mean fully franked yields of 4.25% and 4.5%, respectively.

Bell Potter has a buy rating and $3.30 price target on the company’s shares.

Telstra Corporation Ltd (ASX: TLS)

Another ASX dividend share for income investors to look at is Telstra. Although the telco giant’s shares have been on fire this year and are smashing the market, it doesn’t appear to be too late to invest for dividends.

This is due to its improving outlook, which is expected to allow the company to continue paying a 16 cents per share dividends for the next few years before a long-awaited increase.

Goldman Sachs, for example, believes Telstra’s shares are in the buy zone. It has a buy rating and $4.20 price target on the company’s shares. The broker is also one of those that believes a dividend increase isn’t too far away. It has pencilled in fully franked 16 cents per share dividends through to FY 2023, before an increase to 18 cents per share in FY 2024.

Based on the current Telstra share price of $3.78, this will mean attractive yields of 4.2% before lifting to 4.8%.

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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 owns shares of and has recommended Telstra Corporation Limited. 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.

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