Analysts name 2 ASX dividend shares to buy next week

Here are a couple of dividend shares rated as buys…

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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:

Adairs Ltd (ASX: ADH)

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

While it is having a tough time in FY 2022, the retailer has been tipped by Morgans to bounce back strongly in FY 2023. This is thanks to the newly acquired Focus on Furniture business bedding down and starting to improve its store economics while expanding its footprint.

The company’s new distribution centre is also expected to be a boost to its performance and support its margins. All in all, Morgans believes “[t]hese factors underpin an expectation of positive earnings growth in FY23 and FY24, which we do not think are reflected in the multiple.”

Morgans has an add rating and $3.50 price target on the company’s shares. As for dividends, the broker 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 $2.85, this will mean yields of 6.7% and 9.1%, respectively, over the next couple of years.

Elders Ltd (ASX: ELD)

Another dividend share to look at is Elders. It is an agribusiness company that provides a range of services to rural and regional customers across the Australia/New Zealand region.

After a very difficult period during the 2010s, Elders has returned to form in the 2020s. This follows a highly successful transformation plan and the equally transformational acquisition of Australian Independent Rural Retailers.

Goldman Sachs is very positive on the company and its outlook. It currently has a conviction buy rating and a $17.65 price target on Elders shares.

As for dividends, the broker expects dividends per share of 45 cents in FY2022 and 47 cents in FY2023. Based on the current Elders share price of $14.19, this implies yields of 3.2% and 3.3%, respectively.

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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