2 excellent ASX dividend shares to buy next week

Check out these buy-rated dividend shares…

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If you're looking for dividend shares to buy next week, then you might want to look at the shares listed below.

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

man handing over wad of cash representing ASX retail capital return

Image source: Getty Images

Accent Group Ltd (ASX: AX1)

The first dividend share to look at is Accent. It is a footwear-focused retailer which owns a collection of popular store brands. The popularity of its store brands and their growing footprints have underpinned strong sales, profit, and dividend growth over the last few years.

Unfortunately, FY 2022 looks set to be a difficult year due to lockdowns. For example, during the first 18 weeks of the financial year, store closures across ANZ impacted over 60% of Accent's store portfolio. This resulted in ~$86 million in lost sales and weaker gross margins.

However, the team at Bell Potter think investors should look beyond this short term headwind and focus on its long term growth potential. As a result, the broker has recently put a buy rating and $3.05 price target on its shares.

As for dividends, Bell Potter is forecasting fully franked dividends per share of 9.1 cents in FY 2022 and 13.5 cents in FY 2023. Based on the latest Accent share price of $2.49, this represents yields of 3.65% and 5.4%, respectively.

South32 Ltd (ASX: S32)

Another ASX dividend share to look at is this mining giant. It could be a top option for income investors that are not averse to investing in the resources sector. This is due to its attractive valuation, strong free cash flow generation, and its extremely generous dividend yield forecast.

Thanks to its exposure to a number of in-demand commodities such as aluminium, the team at Goldman Sachs believe South32's shares will provide investors with fully franked dividend yields of greater than 11% per annum for the next five years.

It will therefore come as no surprise to learn that Goldman has a conviction buy rating and $4.40 price target on its shares. This compares to the latest South32 share price of $3.56.

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. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Accent Group. 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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