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

Here are two buy-rated dividend shares…

| More on:

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:

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

Image source: Getty Images

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

Smiling woman listening to music and using her phone.
Dividend Investing

Should I buy Telstra shares for passive income?

I take a closer look at what the latest dividend forecasts could mean for income investors.

Read more »

Yield written on wooden blocks with a hand putting coins on top, with a plant and pen on the table.
Dividend Investing

3 top ASX dividend shares to target this week for lifelong income

Here's some of the top dividend stocks right now.

Read more »

A woman wearing a yellow shirt smiles as she checks her phone.
Dividend Investing

3 ASX income shares I'd buy outside Westpac and the major banks

I think income investors have plenty of options outside Australia’s major banks.

Read more »

Contented looking man leans back in his chair at his desk and smiles.
Dividend Investing

REA Group vs CAR Group: Which is best for income investors?

Head to head: REA Group and CAR Group compared for income, dividend franking and value—my verdict for Australian investors.

Read more »

Beautiful young woman drinking fresh orange juice in kitchen.
Superannuation

I'm planning to retire with $1 million in superannuation. How much passive income can I earn? 

Can I earn enough passive income to support a comfortable lifestyle from $1 million in superannuation?

Read more »

Hand of a woman carrying a bag of money, representing the concept of saving money or earning dividends.
Dividend Investing

Rio Tinto vs APA Group: Which is better for passive income?

Which pays better passive income for ASX investors – Rio Tinto or APA Group? Let’s break down the yields, franking,…

Read more »

Piles of increasing coins on Australian $100 notes.
Dividend Investing

Bought $10,000 worth of BHP shares 5 years ago? Guess how much passive income you've already earned

This is why BHP shares have long been popular among ASX passive income investors.

Read more »

a hand reaches out with australian banknotes of various denominations fanned out.
Dividend Investing

Down 15% and paying record dividends: Are CBA shares now a good buy for passive income?

With CBA shares down 15% since August and paying record FY 2026 dividends, should you buy the ASX bank stock…

Read more »