Analysts rate these 2 ASX dividend shares as buys

These dividend shares could be in the buy zone…

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If you’re currently building an income portfolio, then you might want to look at the shares listed below.

Here’s why these ASX dividend shares could be worth considering right now:

Adairs Ltd (ASX: ADH)

The first dividend share to look at is Adairs. It is a leading homewares and furniture retailer with both a physical presence and growing online presence. The latter includes through both its core brand and its online only Mocka brand.

The team at UBS are positive on Adairs. While it acknowledges there is near term uncertainty, the broker believes the company’s outlook remains very positive thanks to its quality operations, its loyal customer base, and strong earnings potential in a post-pandemic world.

UBS currently has a buy rating and $5.40 price target on the company’s shares. As for dividends, the broker is forecasting fully franked dividends of 19.6 cents per share in FY 2022 and 29.9 cents per share in FY 2023. Based on the current Adairs share price of $3.42, this will mean yields of 5.7% and 8.7%, respectively.

DEXUS Property Group (ASX: DXS)

Another ASX dividend share to look at is Dexus. It is an Australian real estate company focused on office, industrial and retail properties. This includes the recent acquisition of $1.5 billion worth of industrial assets, including Jandakot Airport in Perth and a logistics centre leased to Australia Post.

Macquarie is positive on the company and has an outperform rating and $11.90 price target on its shares. The broker sees upside risk to consensus earnings expectations in the coming years from the sale of capital-intensive assets and a shift towards higher returning income streams.

Its analysts are also forecasting dividends per share of 53.7 cents in FY 2022 and 58.1 cents in FY 2023. Based on the current Dexus share price of $11.13, this will mean yields of 4.8% and 5.2%, respectively.

Wondering where you should invest $1,000 right now?

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Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

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. owns shares of and has recommended ADAIRS FPO. The Motley Fool Australia owns shares of and has recommended ADAIRS FPO. 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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