2 buy-rated ASX dividend shares

Here are a couple of dividend shares with attractive yields…

The Australian share market is home to a good number of shares offering attractive dividend yields.

But which ones should you buy over others? Here's are two that analysts rate as buys right now:

Young investor sits at desk looking happy after discovering Westpac's dividend reinvestment plan

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Bapcor Ltd (ASX: BAP)

The first ASX dividend share to look at is Bapcor. It is the Asia Pacific's leading provider of vehicle parts, accessories, equipment, service and solutions. It is also the name behind a number of retail brands such as Autobarn, Burson Auto Parts and Midas.

Thanks to the strength of these brands and strong demand for used cars, Bapcor was on form and delivered solid sales and profit growth in FY 2021. Looking ahead, the company appears well-placed for growth over the long term thanks to its strong market position and bold expansion plans overseas.

It is also worth noting that Bapcor's shares were sold off last week amid the surprise announcement of the retirement of its long-serving CEO. And while this creates an air of uncertainty, this appears to be more than priced in following the 18% weekly Bapcor share price decline.

The team at Morgans is positive on Bapcor. The broker currently has an add rating and $8.45 price target on the company's shares.

As for dividends, its analysts are forecasting fully franked dividends of 21 cents per share in FY 2022 and then 23 cents per share in FY 2023. Based on the current Bapcor share price of $6.76, this will mean yields of 3.1% and 3.4%, respectively.

Mineral Resources Limited (ASX: MIN)

Another ASX dividend share analysts have named as a buy is Mineral Resources.

It is a mining and mining services company with exposure to two commodities – iron ore and lithium. While the former is acting as a drag on its performance at present, sky high lithium prices are offsetting this thankfully.

It is because of the latter that the team at Macquarie remain very positive on Mineral Resources. Last week the broker reaffirmed its outperform rating and $72.00 price target.

The broker is also forecasting attractive dividend yields in the near term. Macquarie has pencilled in dividends per share of $1.34 in FY 2022 and then $1.85 in FY 2023. Based on the latest Mineral Resources share price of $43.53, this will mean yields of 3.1% and 4.25%, respectively, over the next two financial years.

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 Bapcor. 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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