2 excellent dividend shares that analysts love

Check out these buy-rated dividend shares…

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:

A woman holds a lightbulb in one hand and a wad of cash in the other

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Coles Group Ltd (ASX: COL)

The first dividend share to look at is Coles. It is of course one of the big two supermarket operators with over 800 supermarkets. In addition, the company has over 900 liquor retail stores and over 700 Coles express stores.

This network has significant defensive qualities, which has proven invaluable during the pandemic. And despite its size, the company still has plenty of room for growth in the coming years. It is also focusing on growing its online business by constructing new smart distribution centres with automation giant Ocado.

All in all, this is expected to underpin solid earnings and dividend growth over the 2020s.

For now, the team at Morgans is forecasting a fully franked dividend of 61 cents per share in FY 2022. Based on the current Coles share price of $17.65, this will mean a yield of 3.5%.

Morgans has an add rating and $19.80 price target on its shares.

South32 Ltd (ASX: S32)

Another dividend share to look at is this mining giant. It has exposure to a range of commodities including alumina, aluminium, energy coal, metallurgical coal, manganese ore, nickel, silver, lead, and zinc.

It has also just announced an agreement to acquire 45% of the Sierra Gorda copper mine in Chile from Sumitomo Corporation for US$1.55 billion. This acquisition is expected to be immediately accretive to earnings.

The team at Goldman Sachs were pleased with this acquisition. In response, the broker retained its conviction buy rating and lifted its price target to $4.40. This compares favourably to the current South32 share price of $3.82.

In addition, the broker is forecasting fully franked dividend yields greater than 11% from FY 2022 through to FY 2026.

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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