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:
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Coles Group Ltd (ASX: COL)
The first dividend share to look at is this supermarket giant. It has been a solid performer over the last few years, particularly during the height of the pandemic, and has continued this positive form in FY 2022.
Coles recently reported a 1.5% increase in total first quarter sales to $9,756 million. This growth was driven by its Supermarket and Liquor businesses, which offset weakness in the Express business due to lockdowns.
Looking ahead, the future looks bright for Coles thanks to its strong market position, defensive qualities, and its focus on automation to cut costs and boost its online business. The latter includes constructing new smart distribution centres with automation giant Ocado.
Citi is positive on Coles' outlook and is forecasting fully franked dividends of 65 cents per share in FY 2022 and then 72 cents per share in FY 2023. Based on the current Coles share price of $17.83, this will mean yields of 3.65% and 4%, respectively. Citi has a buy rating and $19.60 price target on its shares.
Transurban Group (ASX: TCL)
Another ASX dividend share for income investors to look at is Transurban.
It is one of the world's leading toll road operators with a collection of important roads in Australia and North America. While lockdowns and border closures have weighed on its performance this year, things are looking very positive now Australia is reopening.
This is expected to lead to busier roads and underpin solid income and distribution growth over the coming years.
For example, Morgans is forecasting dividends of 39 cents per share in FY 2022 and then a jump to 57 cents per share in FY 2023. Based on the current Transurban share price of $13.47, this will mean yields of 2.9% and 4.2% respectively. Morgans has an add rating and $14.79 price target on the company's shares.
