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:
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Australia and New Zealand Banking GrpLtd (ASX: ANZ)
ANZ could be a dividend share to buy if you're looking for exposure to the banking sector following recent weakness.
The team at Macquarie is very positive on the bank due to its strong position in commercial banking. Its analysts prefer this side of banking right now over retail banking due to the latter being impacted by aggressive competition for mortgages, which is weighing heavily on net interest margins.
Macquarie currently has an outperform rating and $30.00 price target on the bank's shares. This compares favourably to the current ANZ share price of $27.27.
In addition, the broker is forecasting a 145 cents per share dividend in FY 2022 and a 150 cents per share dividend in FY 2023. This equates to yields of 5.3% and 5.5%, respectively, over the next two years.
Coles Group Ltd (ASX: COL)
Another ASX dividend share to look at is Coles. It is one of Australia's largest retailers with over 800 supermarkets, over 900 liquor retail stores, and over 700 Coles express stores.
Despite its size, the company still has plenty of room for growth in the coming years. It is also focusing on becoming more efficient and 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.
Citi is a fan of the supermarket giant. The broker recently upgraded its shares to a buy rating with a $19.60 price target. This compares to the latest Coles share price of $18.22.
As for dividends, the broker is forecasting fully franked dividends of 64.5 cents per share in FY 2022 and 71.5 cents per share in FY 2023. This will mean yields of 3.5% and 3.9%, respectively.
