Are you looking for dividend options to supplement your income in 2022? If you are, you may want to look at the ASX dividend shares listed below.
Here's why analysts rate them as buys:
Baby Bunting Group Ltd (ASX: BBN)
This baby products retailer could be a good option for income investors. This is due to its attractive fully franked yield and strong growth potential. The latter is being driven by its strong position in a less discretionary category with around 300,000 births a year in Australia.
But management isn't resting on its laurels and is aiming to cement its position by almost doubling its store network in the future.
The team at Citi is positive on Baby Bunting and has a buy rating and $6.11 price target on its shares.
Citi commented: "We reiterate our Buy rating and see the company having a range of multi-year growth strategies including rollout (target of 110+ stores, with 68 expected by end of FY22e), exclusive/private label growth and supply chain efficiencies."
As for dividends, the broker expects fully franked dividends per share of 16 cents in FY 2022 and 20 cents in FY 2023. Based on the current Baby Bunting share price of $5.55, this will mean yields of 2.9% and 3.6%, respectively.
Woodside Petroleum Limited (ASX: WPL)
Analysts at Morgans believe this energy producer could be a dividend share to buy. Particularly given its impending merger with the petroleum assets of BHP Group Ltd (ASX: BHP). The broker believes the deal is transformative and feels Woodside is getting the better deal.
Morgans currently has an add rating and $29.95 price target on the company's shares.
It commented: "From an economic standpoint we think WPL is clearly getting the better of the deal, with synergies not baked into deal metrics and BHP willing to accept a discount. The deal is transformative, lifting WPL into being a top 10 global E&P with +2 billion barrels of 2P reserves, with EBITDA of US$4.7bnpa and growth options."
Morgans expects fully franked dividends of $1.21 per share in FY 2022 and then $1.06 per share in FY 2023. Based on the current Woodside share price of $22.77, this will mean yields of 5.3% and 4.7%, respectively.
