2 buy-rated ASX dividend shares with attractive yields

These dividend shares could be in the buy zone according to analysts…

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The Australian share market is home to a good number of shares offering attractive dividend yields.

But which ones should you buy over others? Here’s are two that analysts rate highly right now:

Coles Group Ltd (ASX: COL)

This supermarket giant could be a dividend share to consider buying. This is due to its favourable dividend policy and positive long term outlook.

That positive outlook is being underpinned by its strong market position, store expansions, cost cutting, and focus on automation.

Morgans is feeling bullish about Coles. In response to its full year results last month, the broker retained its add rating and lifted its price target to $19.80. This compares favourably to the latest Coles share price of $17.03.

In addition, the broker is forecasting dividends of 61 cents per share in FY 2022 and then 62 cents per share in FY 2023. This implies fully franked yields of 3.6% and 3.65%, respectively.

Mineral Resources Limited (ASX: MIN)

Another ASX dividend share to consider is Mineral Resources. If you don’t mind investing in the resources sector, then it could be a top option.

Particularly given its exposure to lithium, which is one of the hottest commodities around at present. In addition, Mineral Resources is still benefitting from favourable iron ore prices, albeit not as much as it was a few months ago.

The team at Macquarie are very positive on the company. Last week the broker retained its outperform rating and $77.00 price target.

Its analysts are also forecasting fully franked dividends per share of $2.57 in FY 2022 and then $2.29 in FY 2023. Based on the latest Mineral Resources share price of $52.42, this will mean yields of 4.9% and 4.4%, respectively, over the next two financial years.

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*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 owns shares of and has recommended COLESGROUP DEF SET. 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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