2 ASX dividend shares to buy in January

Check out these top dividend shares for January…

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Are you looking for dividend shares to add to your income portfolio in January? If you are, then the two listed below could be top options.

Both have been named as buys and tipped to provide attractive yields that are vastly superior to the interest rates on offer with term deposits. Here's why analysts rate these ASX dividend shares highly:

Adairs Ltd (ASX: ADH)

The first ASX dividend share to look at is Adairs. It is a leading homewares and furniture retailer with both a bricks and mortar and online presence. This includes through its core brand, the online-only Mocka brand, and the soon to be acquired Focus on Furniture brand.

The team at UBS is positive on Adairs. A recent note out reveals that its analysts have a buy rating and $5.90 price target on the company's shares. UBS was pleased with its acquisition of Focus on Furniture and expects it to give Adairs greater exposure to mid-market home furniture categories.

As for dividends, UBS 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 $4.01, this will mean yields of 4.9% and 7.5%, 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.

Dexus has also recently added to its high quality portfolio through the acquisition of $1.5 billion worth of industrial assets. These assets include Jandakot Airport in Perth and a logistics centre leased to Australia Post.

Macquarie is positive on the company and has an outperform rating and $11.93 price target on its shares. The broker is also forecasting dividends per share of 53.7 cents in FY 2022 and 57.5 cents in FY 2023. Based on the current Dexus share price of $11.12, this will mean yields of 4.8% and 5.2%, respectively.

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 and has recommended ADAIRS FPO. The Motley Fool Australia owns 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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