2 top ASX dividend shares analysts are tipping as buys this month

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:

Coles Group Ltd (ASX: COL)

The first ASX dividend share to consider is this supermarket giant. Coles could be a great option for income investors due to its defensive qualities, strong market position, and solid long term growth prospects.

The latter is being underpinned by its Refresh Strategy, which is leading to significant investments in its online business, distribution, and automation.

The team at Morgans is positive on the company and has an add rating and $20.65 price target on its shares. The broker is also forecasting fully franked dividends of 61 cents per share in FY 2022 and then 64 cents per share in FY 2023.

Based on the latest Coles share price of $18.61, this will mean yields of 3.3% and 3.4%, respectively, over the next two years.

Harvey Norman Holdings Limited (ASX: HVN)

Another ASX dividend share that could be in the buy zone is retail giant Harvey Norman.

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. Its analysts believe Harvey Norman is better value than JB Hi-Fi Limited (ASX: JBH) and has stronger prospects.

It commented: “[W]e prefer HVN due to more protection from online competition given higher regional and boomer exposure as well as lower valuation vs JBH which we believe has been under-investing in the face of softening sector growth and intensifying competition.”

Goldman also expects big dividends in the coming years. It 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 $4.50, this will mean yields of 9.6% and 8.8%, 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 COLESGROUP DEF SET and Harvey Norman Holdings Ltd. 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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