When it comes to choosing ASX dividend shares for income, investors are spoilt for choice. Almost every share in the ASX 200 pays a dividend, after all. As such, sometimes it can be helpful to hear the opinions of some expert investors on this most important of matters.
So, here are 2 ASX dividend shares rated as 'buys' today by ASX brokers.
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2 ASX dividend shares brokers rate as buys
Coles Group Ltd (ASX: COL)
Since its spin off from Wesfarmers Ltd (ASX: WES) a few years ago, Coles has amassed a reputation as a strong dividend-paying share. Coles managed to grow its dividend payouts over 2020 – a rare feat on the ASX 200 considering the impact of the COVID-19 pandemic. In 2021, Coles has kept the growth train on the tracks, giving investors 61 cents per share (fully franked, of course) worth of dividends, a nice increase on 2020's 57.5 cents.
One broker who is bullish on coles is Morgans. As my Fool colleague James covered last week, Morgans currently rates Coles shares as an add, with a 12-month share price target of $19.80. That implies a future potential upside of roughly 15% on recent pricing.
Morgans likes Coles' valuation relative to its arch-rival Woolworths Group Ltd (ASX: WOW), as well as its strong dividend payouts. At recent Coles share pricing, this gives the company a dividend yield of 3.55%.
Telstra Corporation Ltd (ASX: TLS)
Telstra is another ASX dividend share to check out today. Like Coles, Telstra already has a strong reputation as an ASX dividend heavyweight. Although some investors still might not have forgiven this telco for its infamous dividend cut back in 2017, Telstra has managed to keep its payouts very steady since then.
It paid out 16 cents in dividends over 2020 and 2021, and looks set to continue this pattern next year. Though the Telstra share price has rallied by close to 30% in 2021 so far, these raw dividend payouts still give Telstra shares a yield of 4.19% on recent pricing.
Investment bank Goldman Sachs is exceptionally bullish on Telstra shares. Goldman currently rates Telstra as a buy, with a 12-month share price target of $4.40. That implies a future potential upside of ~15% on recent pricing. Goldman likes what Telstra's recent acquisition of the Pacific-based telco Digicel will do for its returns, with relatively low risk.
It also reckons Telstra will continue to reward shareholders with healthy dividends as well as potential share buybacks.
