Here are 2 top ASX dividend shares analysts are tipping as buys

These dividend shares could be quality options for investors…

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Looking for dividends shares for you income portfolio? If you are, you may want to check out the two listed below.

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

Baby Bunting Group Ltd (ASX: BBN)

The first ASX dividend share that could be in the buy zone is Baby Bunting. It is the leading baby products retailer with a strong (and growing) presence through its national superstores and online business.

Citi is a fan of the company and has a buy rating and $6.22 price target on its shares. The broker highlights that the retailer has a strong position in a less discretionary category. It expects this to support strong growth in the coming years.

Citi explained: “We see Baby Bunting well placed to outperform the broader small cap retail sector this year given the non-discretionary nature of its category. While the FY22 PE multiple of 24x (or 29x when adjusted for transformation costs) is not cheap, we forecast a FY21 to FY24 EPS CAGR of 17%.”

In respect to dividends, Citi has pencilled in fully franked dividends per share of 16 cents in FY 2022 and 19 cents in FY 2023. Based on the current Baby Bunting share price of $4.59, this will mean yields of 3.5% and 4.1%, respectively.

Harvey Norman Holdings Limited (ASX: HVN)

Another ASX dividend share that could be in the buy zone is Harvey Norman. It is of course one of Australia’s largest retailers with stores across the country and internationally.

The team at Goldman Sachs is very positive on the retail giant and has a buy rating and $5.80 price target on its shares.

Goldman highlights that Harvey Norman “has a greater preference within the boomer generation and a higher exposure to regional Australia.” The broker believes this shields it from online disruption.

As for dividends, the broker is forecasting fully franked dividends of 43.3 cents per share in FY 2022 and 39.6 cents per share in FY 2023. Based on the current Harvey Norman share price of $5.04, this will mean yields of 8.6% and 7.9%, 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. has positions in and has recommended Harvey Norman Holdings Ltd. The Motley Fool Australia has positions in and has recommended Harvey Norman Holdings Ltd. The Motley Fool Australia has recommended Baby Bunting. 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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