2 ASX dividend shares Morgans rates as buys

Here are two buy-rated dividend shares…

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If you’re looking for dividend shares for your income portfolio, then the team at Morgans has got you covered.

Listed below are two quality ASX dividend shares that its analysts have recently named as buys. Here’s what you need to know about them:

Coles Group Ltd (ASX: COL)

The first ASX dividend share to look at is this supermarket giant. It could be worth considering due to its strong market position, focus on automation, cost reduction plans, and strong track record of delivering same store sales growth.

Morgans currently has an add rating and $19.90 price target on its shares. As for dividends, the broker is forecasting dividends per share of 61 cents in FY 2022 and then 64 cents in FY 2023. Based on the current Coles share price of $16.33 this represents yields of 3.7% and 3.9%, respectively, over the next two financial years.

Transurban Group (ASX: TCL)

Another ASX dividend share that Morgans is positive on is Transurban. It is a toll road operator with a portfolio of key roads throughout Australia and North America. While traffic volumes have been impacted by the pandemic over the last couple of years, they are expected to rebound now life is getting back to somewhat normal.

This is expected to lead to busier roads and underpin solid income and distribution growth over the coming years. For example, Morgans is forecasting dividends per share of 35 cents in FY 2022 and then a big jump to 55.3 cents in FY 2023.

Based on the current Transurban share price of $12.84, this will mean yields of 2.7% and 4.3% respectively. Morgans also sees a lot of value in the company’s shares at this level. It has an add rating and $14.57 price target on its shares.

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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 owns and has recommended COLESGROUP DEF SET. 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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