If you're wanting to boost your income with some dividend shares next week, then you might want to consider the two listed below.
Here's what you need to know about these dividend shares:
Image Source: Getty Images
Adairs Ltd (ASX: ADH)
The first ASX dividend share for investors to look at is leading furniture and homewares retailer, Adairs.
Morgans is very positive on the retailer and has an add rating and $3.50 price target on its shares. It expects Adairs to bounce back strongly from a difficult period due to COVID-19 impacts.
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."
In respect to dividends, Morgans 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 $2.80, this will mean yields of 6.8% and 9.3%, respectively, over the next couple of years.
HomeCo Daily Needs REIT (ASX: HDN)
Another ASX dividend share to look at is the HomeCo Daily Needs REIT. This property company invests in convenience-based assets across target sub-sectors of neighbourhood retail, large format retail, and health and services.
Unlike Adairs, HomeCo Daily Needs has been a strong performer so far in FY 2022. During the first half, it delivered a 38% increase in funds from operation (FFO) per share to 4 cents. This led to management upgrading its full year guidance.
Goldman Sachs was impressed and sees a lot of value in the HomeCo Daily Needs share price at the current level. It has a buy rating and $1.70 price target on its shares.
It commented: "We believe HDN is undervalued at its current valuation given its diversified tenant base, and see it as well positioned to benefit from the shift to omni channel retailing, with additional external growth opportunities to drive earnings growth over the medium-term."
As for dividends, based on the current HomeCo Daily Needs share price of $1.49, Goldman is expecting dividend yields of 5.5% in FY 2022 and 6.1% in FY 2023.
