2 excellent ASX dividend shares for income investors

These ASX dividend shares could be top options for income investors…

| More on:
Dividend stocks represented by paper sign saying dividends next to roll of cash

Image source: Getty Images

If you’re an income investor on the lookout for dividend options, then you may want to look at the two listed below.

Here’s what you need to know about them:

Accent Group Ltd (ASX: AX1)

The first ASX dividend share to look at is Accent Group. It is a retail group with a focus on the leisure footwear market.

Accent has been growing at a solid rate over the last few years thanks to the popularity of its store brands, its network expansion, and strong demand. This continued in FY 2021, with Accent recently reporting a 19.9% increase in sales to $1.14 billion and a 38.6% jump in net profit after tax to $76.9 million.

And although the team at Bell Potter are expecting a softer result next year, they remain very positive on the longer term.

A recent note reveals that Bell Potter has a buy rating and $2.90 price target on its shares. The broker is also expecting fully franked dividends per share of 9 cents in FY 2022 and 13 cents in FY 2023.

Based on the current Accent share price of $2.14, this will mean fully franked yields of 4.2% and 6.1%, respectively.

Australia and New Zealand Banking GrpLtd (ASX: ANZ)

Another ASX dividend share for income investors to look at is banking giant ANZ.

It could be a top option due to its improving outlook and cost cutting plans. The latter sees the company aiming to reduce its cost base materially to $8 billion in the near future.

In addition, ANZ has a very strong capital position. At the end of the third quarter, ANZ’s CET1 ratio stood at 12.2%. This is well ahead of APRA’s unquestionably strong benchmark of 10.5%.

Further, ANZ’s recently announced $1.5 billion share buyback is only expected to reduce its CET1 ratio by 35 basis points. This gives the bank plenty of opportunities to return further funds to shareholders in the future.

Analysts at Morgans are bullish on the bank. They currently have an add rating and $34.50 price target on ANZ’s shares.

In addition, the broker is forecasting fully franked dividends of 145 cents per share in FY 2021 and then 165 cents per share in FY 2022. Based on the latest ANZ share price of $27.59, this represents yields of 5.2% and 6%, respectively.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

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 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.

More on Dividend Investing