2 top ASX dividend shares tipped to grow at a solid rate

Looking for growing dividends? Check out these options…

Are you looking to add some growing dividend shares to your portfolio this month? Then you may want to look at the ones listed below.

Here's why they could be top options for income investors:

chart showing an increasing share price

Image source: Getty Images

Accent Group Ltd (ASX: AX1)

The first ASX dividend share to look at is Accent. It is a growing retail group with a collection of footwear store brands including HYPEDC, Platypus, Sneaker Lab, Stylerunner, and The Athlete's Foot. It has also recently acquired fashion retailer Glue Store and launched a new workwear store brand called 4 Workers.

Given the popularity of its brands, its store expansion plans, and favourable trading conditions, Accent has been tipped to continue growing its earnings and dividend in the coming years.

Bell Potter, for example, is very positive on the company. It has a buy rating and $3.30 price target on its shares.

The broker is 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 $2.80, this represents fully franked yields of 4.2% and 4.4%, respectively.

Collins Foods Ltd (ASX: CKF)

Another ASX dividend share to look at is Collins Foods. It is a leading quick service restaurant operator with a focus on KFC restaurants.

It has been a positive performer during the pandemic. For example, in June the company released its full year results and reported a 12.4% increase in revenue to $1.07 billion. This was driven largely by its KFC Australia business, which reported a 13.8% increase in revenue to $900.4 million thanks to new store openings and same store sales growth of 12.9%.

On the bottom line, the company's underlying net profit after tax from continuing operations growth was even stronger. It was up 18.2% to $56.9 million. This allowed the Collins Foods board to increase its dividend once again.

This went down well with analysts at Canaccord Genuity. Its analysts have a buy rating and $13.35 price target on the company's shares. The broker is also forecasting further dividend growth in the coming years. It expects fully franked dividends per share of 26 cents in FY 2022 and then 29 cents in FY 2023.

Based on the latest Collins Foods share price of $11.08, this will mean yields of 2.3% and 2.6%, respectively.

Motley Fool contributor James Mickleboro owns shares of Collins Foods Limited. 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 and Collins Foods Limited. 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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