Here are 2 excellent ASX dividend shares rated as buys

These dividend shares have been named as buys…

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Looking for dividends shares to buy for your 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 a leading baby products retailer with a network of superstores across Australia.

While the retail sector is a tough place to be right now due to rising inflation, the team at Citi remains very positive on the company. Last month, the broker retained its buy rating and $6.22 price target on its shares.

Citi is particularly positive on Baby Bunting due to its private label opportunity, which it believes has a significant runway for growth. It also highlights that it has a strong position in a less discretionary category. It expects this to support strong sales and earnings growth in the coming years.

As for 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 $4.35, this will mean yields of 3.7% and 4.4%, respectively.

HomeCo Daily Needs REIT (ASX: HDN)

Another ASX dividend share that has been rated as a buy is HomeCo Daily Needs REIT. It is a property company with a focus on neighbourhood retail, health and services, and large format retail. The latter include retail parks that were owned by Aventus before the two companies merged.

Goldman Sachs is a big fan of HomeCo Daily Needs and has a buy rating and $1.70 price target on its shares.

Its analysts believe the company is well positioned to benefit from the shift to omni channel retailing. Goldman also highlights that the company has additional external growth opportunities to drive earnings growth over the medium-term. This includes development and asset optimisation opportunities.

As for dividends, the broker is forecasting dividends per share of 8 cents in FY 2022 and 9 cents in FY 2023. Based on the current HomeCo Daily Needs share price of $1.33, this will mean dividend yields of 6% and 6.75%, 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 no position in any of the stocks mentioned. 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 Scott Phillips.

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