2 excellent ASX dividend shares named as buys

These dividend shares could be in the buy zone now…

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ASX dividend shares

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Investors that are interested in boosting their income portfolio with some dividend shares might want to look at the ones listed below.

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

Coles Group Ltd (ASX: COL)

This supermarket giant could be a dividend share to buy. This is due to Coles having a very positive long term growth outlook and a favourable dividend policy.

In respect to the former, the supermarket giant’s positive outlook is being underpinned by its strong market position, defensive qualities, and focus on cutting costs and automation. This has seen the company invest heavily in new distribution centres with automation giant Ocado.

The team at Morgans are positive on Coles. They currently have an add rating and $19.80 price target on its shares.

In addition, the broker is forecasting dividends per share of 61 cents in FY 2022 and 62 cents in FY 2022. Based on the current Coles share price of $17.08, this will mean yields of 3.5% and 3.6%, respectively.

Suncorp Group Ltd (ASX: SUN)

Another ASX dividend share to consider is Suncorp. It is one of Australia’s leading insurance and banking companies.

Suncorp was back on form in FY 2021 and reported a 42.1% increase in cash earnings to $1,064 million. This allowed the insurance giant to reward shareholders with a special dividend and a $250 million on-market share buyback.

Positively, analysts at Credit Suisse expect the positive form to continue, albeit at more modest growth rates. As a result, the broker has put an outperform rating and $14.00 price target on its shares.

Credit Suisse is also forecasting fully franked dividends of 73 cents per share in FY 2022 and then 74 cents in FY 2023. Based on the current Suncorp share price of $12.43, this will mean 5.9% and 6% yields, respectively.

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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 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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