Are you looking for dividend shares to buy next week? If you are, then you may want to look at the two listed below.
Here's why these ASX dividend shares could be in the buy zone:
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Adairs Ltd (ASX: ADH)
The first ASX dividend share to look at is this leading retailer of homewares and home furnishings. Adairs has a growing network of stores across Australia and New Zealand and a strong online presence through both its core brand and the Mocka brand.
Thanks to a thriving housing market and a favourable redirection in consumer spending during the pandemic, Adairs reported strong sales and profit growth in FY 2021. And while lockdowns will make it hard to top this in FY 2022, the company's longer term outlook remains very positive.
In the meantime, the team at Morgans are still expecting Adairs' shares to provide very generous dividend yields in FY 2022 and FY 2023.
Its analysts have pencilled in fully franked dividends per share of 22 cents and 27 cents for the two financial years. Based on the current Adairs share price of $3.84, this will mean yields of 5.7% and 7%, respectively.
Morgans has an add rating and $4.20 price target on the company's shares.
BHP Group Ltd (ASX: BHP)
Another ASX dividend share to look at is BHP. It could be a top option for income investors, especially after recent and significant weakness in the BHP share price.
That weakness has been driven by a sharp pullback in the iron ore price. However, while the iron ore price weakness is disappointing (but not unexpected), other commodities such as coal have been booming.
It is because of this that the team at Macquarie remains very bullish on BHP. In fact, the broker estimates that BHP's shares are trading on a free cash flow yield of ~20% despite the iron ore price weakness.
This strong free cash flow is expected to underpin fully franked dividends of $3.97 per share in FY 2022 and $2.88 per share in FY 2023. Based on the current BHP share price of $37.74, this will mean yields of 10.5% and 7.6%, respectively.
Macquarie has an outperform rating and $56.00 price target on the mining giant's shares.
