2 ASX dividend shares rated as buys by brokers

Nine is one of the ASX dividend shares that could be worth looking at.

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ASX dividend shares that are rated as buys that also have good projected income yields could be good ones to think about.

Some businesses are expected to pay attractive dividends over the next 12 months.

These two ASX dividend shares could be good options for the long-term:

Nine Entertainment Co Holdings Ltd (ASX: NEC)

Nine Entertainment is the first of the two businesses.

It’s a diversified media business that operates things like the Nine TV network, Stan, the Australian Financial Review, The Age and the Sydney Morning Herald.

One of the brokers that currently rates Nine as a buy is Credit Suisse, with a price target of $3.40. That suggests the Nine share price could rise by around 20% over the next 12 months.

The broker projects that Nine will pay a grossed-up dividend yield of 5.6% in FY22.

FY21 saw advertising market growth, “strong” audience results across all of its operating segments, growth in revenue and profitability for its ‘TV combined’, the launch of Stan Sport and “strong” cashflows. It also completed agreements with digital platforms like Facebook, providing recurring revenue for publishing.

In financial terms, total revenue increased 8% to $2.33 billion and net profit rose 83% to $261 million.

In July 2021, it saw free to air ad revenue grow by 20% with costs rising 3%, 9Now revenue was up 70%, Stan subscribers are growing and publishing digital subscription revenue was up 9%.

Nine has committed to pay a dividend payout ratio of 60% to 80% of net profit after tax, before ‘specific items’.

Bapcor Ltd (ASX: BAP)

Bapcor is a leading auto parts business across Australia, New Zealand and, increasingly, south east Asia after the Tye Soon investment and Thailand expansion.

It was one of the few S&P/ASX 200 Index (ASX: XJO) shares to grow its dividend during FY20, even if it was just a small increase.

Bapcor is seen as a defensive business – car owners and mechanics will always need new parts when the demand arises.

Burson is a key brand within the portfolio. It has been steadily growing its store network, same store sales and profit margins. Autobarn has also seen growth.

The ASX dividend share is currently rated as a buy by a few different brokers including Credit Suisse. The broker has a price target of $9.20 on the business, which suggests the Bapcor share price could rise by more than 20% over the next year.

Credit Suisse thinks that Bapcor is going to pay a grossed-up dividend yield of 4.4% in FY22.

That projection comes after the business paid a dividend of 20 cents per share in FY21 (a 14.3% increase on FY20). This was funded by a 26.8% increase of earnings per share (EPS) to 38.3 cents (and a 46.5% increase of net profit after tax to $130 million).

Bapcor said its performance was driven by increased market share, elevated market demand, ongoing network expansion, a launch of new own brands and focused management of cost of doing business.

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Motley Fool contributor Tristan Harrison 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 Bapcor. 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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