2 top ASX dividend shares rated as buys this month

These dividend shares have been named as buys this month…

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Are you looking for some quality ASX dividend shares that could grow over the 2020s? If you are, then you may want to look at the ones listed below.

Here's what you need to know about these dividend shares:

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Image Source: Getty Images

Collins Foods Ltd (ASX: CKF)

The first ASX dividend share to look at is Collins Foods. It is a leading quick service restaurant operator with a focus on KFC restaurants in Australia and Europe. It also has a growing network of Taco Bell restaurants across several Australian states.

Collins Foods was a solid performer again in FY 2021. It reported a 12.4% increase in revenue to $1.07 billion and an 18.2% lift in underlying net profit after tax to $56.9 million. This was driven largely by its KFC Australia business, which reported same store sales growth of 12.9%.

The team at Canaccord Genuity were pleased with its performance. In response, its analysts put a buy rating and $13.35 price target on the company's shares.

Canaccord Genuity is also forecasting further dividend growth in the coming years. It has pencilled in 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 $12.49, this will mean yields of 2.1% and 2.3%, respectively.

Transurban Group (ASX: TCL)

Another ASX dividend share to look at is this toll road operator. While lockdowns have made many of its road barren, it is worth remembering that this is only temporary. As we saw last year, when life returns to normal, traffic volumes quickly recover.

So with the vaccine rollout going well, it may not be long until its roads are busy once again.

Analysts at Macquarie are positive on the company. This morning the broker retained its buy rating but trimmed its price target slightly to $14.66. Macquarie is forecasting dividends of 42.3 cents per share in FY 2022 and then 64.3 cents per share in FY 2023.

Based on the current Transurban share price of $14.36, this will mean yields of 3% and 4.5%, 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 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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