If you're in the process of building an income portfolio, then you might want to look at the shares listed below.
Here's why these ASX dividend shares could be in the buy zone right now:
Adairs Ltd (ASX: ADH)
The first ASX dividend share to look at is this leading retailer of homewares and home furnishings.
Adairs has been a fantastic performer over the last 12 months, leading to the recent release of a very strong FY 2021 result. For example, Adairs reported a 28.5% increase in sales to $499.8 million and the almost doubling of its EBIT to $109.1 million.
Analysts at Morgans remain positive on the company. In response to its full year results, the broker has upgraded its shares to an add rating with a $4.20 price target.
Morgans is also expecting generous dividends from the retailer in the next couple of years. It has pencilled in fully franked dividends of 22 cents in FY 2022 and 27 cents in FY 2023.
Based on the current Adairs share price of $4.01, this will mean yields of 5.5% and 6.7%, respectively
Westpac Banking Corp (ASX: WBC)
Another ASX dividend share to consider is Australia's oldest bank. It has also been a positive performer over the last 12 months after rebounding strongly from the pandemic.
For example, during the first half, Westpac reported cash earnings of $3,537 million. This was a 256% increase over the prior corresponding period and a 119% increase over the second half of FY 2020.
One broker that has been impressed with its recovery is Goldman Sachs. Its analysts currently have a buy rating and $29.93 price target on the bank's shares.
Goldman is also expecting generous dividends of 116 cents in FY 2021 and 128 cents in FY 2022. Based on the latest Westpac share price of $25.82, this implies yields of 4.5% and 5%, respectively.
In addition, the broker has tipped the bank to return $5 billion to shareholders in the near future due to its surplus capital and franking credits.
