2 ASX dividend with attractive yields that brokers rate as buys

Here are a couple of dividend shares rated as buys…

If you're wanting to boost your income with some dividend shares next week, then you might want to consider the ones listed below.

Here's what you need to know about these dividend shares:

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Adairs Ltd (ASX: ADH)

The first ASX dividend share for investors to look at this week is leading furniture and homewares retailer, Adairs.

Although FY 2022 has been very disappointing due to COVID-19 impacts, this weakness is only expected to be temporary. In light of this, the team at Morgans believe the recent selloff of its shares could be a buying opportunity for patient income investors. Particularly given its new national distribution centre (NDC).

It said: "In FY23, we expect Focus to have bedded down and to have started a strategy of improving store economics while expanding its footprint. We expect the NDC to be up and running and delivering efficiencies. We expect Mocka to be making its first steps towards an omni-channel strategy. These factors underpin an expectation of positive earnings growth in FY23 and FY24, which we do not think are reflected in the multiple. ADD."

Morgans has an add rating and $3.50 price target on its shares. As for dividends, its is forecasting fully franked dividends of 19 cents per share in FY 2022 and 26 cents per share in FY 2023.

Based on the current Adairs share price of $2.90, this will mean yields of 6.55% and 8.2%, respectively, over the next couple of years.

Elders Ltd (ASX: ELD)

Another ASX dividend share for investors to look at this agribusiness company. Elders provides livestock, real estate, feed and processing, wool agency services, financial planning, and grain marketing services to rural and regional customers.

After a difficult period, Elders has recently returned to form thanks to the success of its transformation plan and acquisitions.

The good news is that Goldman Sachs expects this positive form to continue. This is due to the rationalisation of the rural services industry, margin expansion through backward integration, and the benefits of its large scale systems modernisation project.

Goldman currently has a conviction buy rating and $15.65 price target on its shares. In addition, the broker is forecasting fully franked dividends of 40 cents per share in FY 2022 and 42 cents per share in FY 2023. Based on the current Elders share price of $12.02, this will mean yields of 3.3% and 3.5%, respectively, over the next two 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 Australia has recommended Elders Limited. 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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