Analysts rate these ASX dividend shares as buys

These dividend shares are highly rated right now…

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Luckily for income investors, the Australian share market is home to a good number of quality dividend shares.

Two that are highly rated by analysts right now are listed below. Here’s what you need to know about them:

Coles Group Ltd (ASX: COL)

The first ASX dividend share to look at is this supermarket giant. It has been over a century since GJ Coles opened his first store in Collingwood, Victoria in 1914. Since then, Coles has gone on to become one of Australia’s most recognisable brands and one of the big two players in the supermarket industry.

Coles now has over 800 supermarkets across the country, over 900 liquor retail stores, and over 700 Coles express stores. From this vast network, the company processes the equivalent of 35 transactions every second.

It was thanks partly to this strong market position that the company was able to deliver a 3.1% increase in sales to $38,562 million and a 7.5% jump in net profit after tax to $1,005 million in FY 2021.

Morgans is positive on Coles. In response to its full year results, the broker retained its add rating and lifted its price target to $19.80. It is forecasting fully franked dividends of 61 cents per share in FY 2022 and then 62 cents per share in FY 2023.

Based on the current Coles share price of $17.29, this represents yields of 3.5% and 3.6%, respectively.

Super Retail Group Ltd (ASX: SUL)

Another ASX dividend share to consider is the retail group behind the BCF, Macpac, Rebel, and Super Cheap Auto retail brands.

Super Retail was on form again in FY 2021. Last month it reported a 22% increase in sales to $3.45 billion and a 107% jump in normalised net profit after tax to $306.8 million. This was driven by growth across the business, which was underpinned by a favourable redirection in consumer spending.

Credit Suisse was pleased with its performance in FY 2021. It currently has an outperform rating and $14.41 price target.

In addition, the broker is forecasting dividends per share of 53 cents in FY 2022 and 50 cents in FY 2023. Based on the current Super Retail share price of $11.86, this will mean fully franked yields of 4.5% and 4.2%, respectively.

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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 owns shares of and has recommended COLESGROUP DEF SET and Super Retail Group 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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