If you're an income investor searching for new dividend shares to buy, it could be worth checking out the two listed below.
Here's why they are rated as buys right now:
Adairs Ltd (ASX: ADH)
The first ASX dividend share that could be a buy is Adairs. It is the leading furniture and homewares retailer behind the Focus on Furniture, Mocka, and eponymous Adairs brands.
While trading conditions are tough right now, the team at Morgans remains upbeat and has an add rating and $3.50 price target on its shares.
Its analysts are expecting Adairs to bounce back strongly in FY 2023 thanks to the recent acquisition of Focus on Furniture and the launch of its new national distribution centre.
Morgans is also expecting some very big dividends in the near term. It 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 $2.42, this will mean yields of 7.9% and 10.7%, respectively.
Mineral Resources Limited (ASX: MIN)
Another dividend share to look at is Mineral Resources. This mining and mining services company could be a top option for income investors that aren't averse to investing in the resources sector.
This is because Mineral Resources has exposure to two of the hottest commodities in town right now – iron ore and lithium.
Goldman Sachs is very positive on the company and has a buy rating and $73.80 price target. Its analysts are forecasting the "more than doubling of group EBITDA to over A$2bn in FY23 driven by higher lithium and low grade iron ore prices, and a 5% increase to mining services volumes to ~300Mt."
As for dividends, Goldman is forecasting fully franked dividends of 64 cents per share in FY 2022 and then 244 cents per share in FY 2023. Based on the latest Mineral Resources share price of $60.35, this will mean yields of 1% and 4%, respectively.
