Why NAB (ASX:NAB) and this ASX dividend share could be buys

Here are two buy-rated dividend shares…

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Are you looking for dividend shares to add to your income portfolio next week? If you are, then the two listed below could be worth considering.

These dividend shares have been rated as buys and tipped to provide income investors with attractive yields in the coming years. Here's what you need to know about them:

Man presses green buy button and red sell button on a graph.

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Adairs Ltd (ASX: ADH)

The first ASX dividend share to look at is Adairs. It is a leading homewares and furniture retailer with a presence online and offline through three brands. These are the eponymous Adairs brand, its online-only brand Mocka, and the newly acquired Focus on Furniture brand.

And while trading conditions have been tough due to lockdowns, the team at Morgans thinks investors should stick with the company.

Its analysts have recently put an add rating and $3.70 price target on its shares. Morgans is also forecasting fully franked dividends of 19 cents per share in FY 2022 and 23 cents per share in FY 2023. Based on the current Adairs share price of $3.11, this will mean yields of 6.1% and 7.4%, respectively.

National Australia Bank Ltd (ASX: NAB)

Another ASX dividend share that could be in the buy zone is NAB. This is due to its strong position in business banking, the positive outlook for interest rates, and its acquisition of Citi's Australian consumer business. The latter fills a gap in its offering which bodes well for its future growth.

Bell Potter remains very positive on NAB and has a buy rating and $32.50 price target on its shares.

The broker is also expecting attractive yields in the coming years, with fully franked dividends per share of 132.5 cents in FY 2022 and 134.5 cents in FY 2023. Based on the current NAB share price of $30.58, this will mean yields of 4.3% and 4.4%, respectively, over the next couple of 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. 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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