The good news for income investors in this low interest rate environment, is that there are countless dividend shares for investors to choose from on the Australian share market.
But with so many to choose from, it can be hard to decide which ones to buy.
To narrow things down, I have picked out two ASX dividend shares that are rated as buys by analysts. They are as follows:
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Adairs Ltd (ASX: ADH)
The first dividend share to look at is Adairs. It is a leading retailer of furniture, homewares, and home furnishings in Australia and New Zealand. Thanks to its strong market position and omni-channel footprint, which gives it exposure to both online and in-store growth, Adairs has been tipped to grow at a solid rate over the 2020s.
This is expected to lead to the payout of generous dividends in the coming years. For example, Morgans is forecasting fully franked dividends per share of 22 cents in FY 2022 and then 27 cents in FY 2023. Based on the current Adairs share price of $3.81, this will mean yield of 5.8% and 7%, respectively.
Morgans has an add rating and $4.20 price target on the retailer's shares.
DEXUS Property Group (ASX: DXS)
Another ASX dividend share to look at is Dexus. It is an Australian real estate company focused on owning, managing, and developing office, industrial, and retail properties.
DEXUS has a high quality portfolio of assets and has just added to this through the acquisition of $1.5 billion worth of industrial assets. These assets include Jandakot Airport in Perth and a logistics centre leased to Australia Post. All in all, they bring DEXUS' industrial portfolio to $11.3 billion in value and 4.6 million square metres in size.
The team at Macquarie were pleased with the deal. In response, the broker has retained its outperform rating and lifted its price target to $11.90. The broker is also forecasting dividends per share of 53.7 cents in FY 2022 and then 58.1 cents in FY 2023.
Based on the current DEXUS share price of $10.64, this will mean 5% and 5.45% yields, respectively.
