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

Here are two buy-rated dividend shares…

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

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

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:

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.

More on Dividend Investing

Man holding out $50 and $100 notes in his hands, symbolising ex dividend.
Dividend Investing

3 ASX dividend stocks which pay their investors every single month

These shares paying investors cash every month.

Read more »

Man holding out Australian dollar notes, symbolising dividends.
Dividend Investing

These 2 ASX dividend shares are great buys right now

These investments offer investors great buying right now…

Read more »

a young boy dressed in a business suit and wearing thick black glasses peers straight ahead while sitting at a heavy wooden desk with an old-fashioned calculator and adding machine while holding a pen over a large ledger book.
Dividend Investing

3 ASX dividend stocks I'm excited to see the payouts of this reporting season

These payouts could be very important signs for the ASX.

Read more »

Happy man holding Australian dollar notes, representing dividends.
Dividend Investing

3 ASX dividend shares that still beat bank interest rates

Brokers are tipping these high-yield shares as buys for income investors.

Read more »

Middle age caucasian man smiling confident drinking coffee at home.
Dividend Investing

Meet the ASX dividend stocks offering massive 6% to 10% yields

These stocks are expected to provide investors with generous yields in the near term.

Read more »

A man wearing a colourful shirt holds an old fashioned phone to his ear with a look of curiosity on his face as though he is pondering the answer to a question.
Communication Shares

Are Telstra shares a good buy for passive income?

Passive income is high on every investor's list.

Read more »

A woman is excited as she reads the latest rumour on her phone.
Consumer Staples & Discretionary Shares

Check out the Woolworths share price and dividend forecast for 2026 – it's hard to believe!

Analysts are predicting a dramatic dividend rebound from Woolies.

Read more »

Woman with $50 notes in her hand thinking, symbolising dividends.
Retirement

Why this ASX 200 share is a retiree's dream

This business can provide investors with very strong, reliable dividends.

Read more »