Are you interested in boosting your income portfolio with some new additions? Then below are two options to consider.
Here's why these ASX dividend shares have been rated as buys:
Coles Group Ltd (ASX: COL)
This supermarket giant could be a dividend share to consider buying. This is due to its strong market position, focus on automation, and the normalisation of shopping trends.
It was thanks to these factors that Coles delivered a strong full year result in FY 2021. For the 12 months ended 30 June, Coles reported sales revenue growth of 3.1% to $38,562 million and net profit after tax growth of 7.5% to $1,005 million. The latter was a touch ahead of the market's expectations.
Analysts at Morgans were pleased with the company's performance and appear confident in its long term outlook. The broker currently has an add rating and $19.80 price target on Coles' shares.
In addition, the broker 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 $17.04, this represents yields of 3.5% and 3.6%, respectively, over the next two years.
Transurban Group (ASX: TCL)
Another ASX dividend share to look at is Transurban. It is a toll road operator with a portfolio of important roads throughout Australia and North America. This includes the CityLink in Melbourne, Cross City Tunnel in Sydney, and the AirportlinkM7 in Brisbane.
While traffic volumes have been impacted by the pandemic and recent lockdowns, it is expected to rebound once trading conditions return to normal. And with New South Wales reopening this week and Melbourne edging close to doing the same, its roads could soon be filled with cars again.
Ord Minnett is very positive on the company. It currently has a buy rating and $16.20 price target on its shares.
The broker is forecasting dividends of 43 cents per share in FY 2022 and then 64 cents per share in FY 2023. Based on the current Transurban share price of $13.79, this will mean yields of 3.1% and 4.6%, respectively.
