2 high yield ASX dividend shares named as buys

Here’s why these dividend shares could be in the buy zone…

| More on:
Young female investor holding cash ASX retail capital return

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

If you’re looking for dividends shares with big yields, then you may want to look at the ones listed below.

Here’s why analysts rate these high yield dividend shares as buys:

Accent Group Ltd (ASX: AX1)

The first ASX dividend share to look at is this footwear focused retailer. It is responsible for a collection of popular brands including HYPE DC and The Athlete’s Foot. Accent could be a top option for income investors following a recent pullback in its share price caused by concerns over its performance in FY 2022 due to lockdowns and other COVID headwinds.

And while its underperformance is expected to impact its profits and therefore its dividends this year, analysts at Bell Potter expect a big rebound in FY 2023. The broker currently has estimates for dividends per share of 9.1 cents this year and then 13.5 cents next year. Based on the current Accent share price of $2.26, this will mean yields of 4% and 6%, respectively. Bell Potter also sees decent upside for its shares with its price target of $3.05.

BHP Group Ltd (ASX: BHP)

Another ASX dividend share to look at is BHP. It is one of the world’s largest mining companies with a collection of world class operations across a number of regions and commodities. The latter includes Petroleum, Potash, Copper, Iron ore, Coal and Nickel. And while the company is in the process of spinning out its petroleum assets via a merger with Woodside Petroleum Limited (ASX: WPL), shareholders will be given a slice of the new company.

The team at Macquarie is very positive on BHP. It has an outperform rating and $52.00 price target on the company’s shares. As for dividends, the broker is expecting fully franked dividends of ~$3.86 in FY 2022 and ~$2.86 in FY 2023. Based on the current BHP share price of $46.70, this will mean yields of 8.2% and 6.1%, 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. 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.

More on Dividend Investing

a woman with a huge happy smile on her face eyes a jar of coins next to her on a table.
Dividend Investing

Experts name 2 ASX dividend shares to buy next week

These dividend shares have been named as buys...

Read more »

two young boys dressed in business suits and wearing spectacles look at each other in rapture with wide open mouths and holding large fans of banknotes with other banknotes, coins and a piggybank on the table in front of them and a bag of cash at the side.
Dividend Investing

These 2 ASX 200 shares are going ex-dividend next week

We take a look at the two ASX 200 shares trading without rights next week.

Read more »

A happy construction worker leap-frogs over another as a third looks on
Dividend Investing

Locked in the CSR dividend? Here’s the payment info

Own CSR shares? It's time to check your bank account.

Read more »

A woman puts money in her piggy bank all rugged up for the winter cold.
Dividend Investing

ANZ rewards shareholders with its latest dividend. Here are the details

Payday has come for those who are eligible for the bank's dividend.

Read more »

Dividend Investing

2 excellent ASX dividend shares that analysts rate as buys in July

Here are two dividend shares rated as buys...

Read more »

Two women shoppers smile as they look at a pair of earrings in a costume jewellery store with a selection of large, colourful necklaces made of beads lined up on a display shelf next to them.
Dividend Investing

Here’s why I think Lovisa could be a top ASX dividend share

This retail ASX share could provide good dividend income for investors.

Read more »

Gold bars and Australian dollar notes.
Resources Shares

Do Evolution Mining shares pay a dividend?

The ASX 200 mining shares are known as good dividend payers -- is Evolution among them?

Read more »

a pile of colourful trainer shoes and sandshoes fashioned to look like a large shoe.
Retail Shares

What is the current dividend yield for Accent shares?

What kinds of dividends is Accent Group paying these days?

Read more »