Analysts name 2 ASX dividend shares to buy with growing yields

These dividend shares have been tipped as buys…

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If you’re in the market for some dividend shares, then look no further. Listed below are two highly rated dividend shares that analysts have recently rated as buys.

Here’s what you need to know about them:

Bank of Queensland Limited (ASX: BOQ)

The first ASX dividend share for investors to consider is Bank of Queensland.

The team at Morgans appears to believe it could be a good option for investors that don’t already have meaningful exposure to the banking sector. Particularly at the current level, which the broker sees as very attractive given its transformation and recent acquisition of ME Bank.

Morgans commented: “We see exceptional value in Bank of Queensland’s stock. The Company has been executing well on its transformation program, it continues to grow its home loan book at above-system levels, we don’t expect its NIM to fare worse than the industry-wide trend, and cost synergies associated with the ME Bank acquisition are being realised at a faster rate than originally anticipated.”

The broker currently has an add rating and $11.00 price target on the bank’s shares. As for dividends, it is forecasting fully franked dividends per share of 49 cents in FY 2022 and then 54 cents per share in FY 2023. Based on the current Bank of Queensland share price of $7.60, this will mean yields of 6.45% and 7.1%, respectively.

Coles Group Ltd (ASX: COL)

Another ASX dividend share for investors to consider is retail giant, Coles.

It is one of Australia’s largest retailers with a growing network of supermarkets, liquor stores, and convenience stores across the country.

This strong network, its defensive qualities, and long track record of same store sales growth has analysts forecasting growing sales and earnings in the coming years. Especially in the current inflationary environment.

Citi is a fan of Coles and was pleased with its third-quarter update. As a result, it put a buy rating and $19.30 price target on its shares. It commented: “Coles provided its 3Q22 trading update with sales in line with our expectations. There were no observable signs of trading down or lower volumes in response to higher food inflation.”

The broker is also expecting Coles to increase its dividend meaningfully in the coming years. For example, it is forecasting fully franked dividends of 63 cents per share in FY 2022 and then 72 cents per share in FY 2023. Based on the current Coles share price of $18.79, this will mean yields of 3.4% and 3.8%, respectively.

Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended COLESGROUP DEF SET. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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