2 ASX dividend shares that experts are tipping as buys right now

Here are a couple of dividend shares that experts rate as buys…

| More on:
A businesswoman weighs up the stack of cash she receives, with the pile in one hand significantly more than the other hand.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

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 ADAIRS FPO. The Motley Fool Australia has positions in and has recommended ADAIRS FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Dividend Investing

A man smiles as he holds bank notes in front of a laptop.
Dividend Investing

Goldman Sachs names 2 ASX dividend shares to buy

Goldman Sachs has named these dividend shares as buys...

Read more »

Broker looking at the share price on her laptop with green and red points in the background.
Dividend Investing

2 ASX 200 dividend shares analysts rate as buys

Here are two ASX 200 dividend shares rated as buys....

Read more »

An ASX dividend investor holds a fanned out bunch of $40 Australian cash notes and wonders whether any ASX lithium shares pay dividends
Dividend Investing

Brokers name 2 ASX dividend shares to buy now

Here are two top dividend shares that brokers say are buys...

Read more »

A woman looks quizzical while looking at a dollar sign in the air.
Dividend Investing

Will Kogan shares ever pay a dividend again?

When are the online retailer's dividends coming back? Let's take a look.

Read more »

A smiling woman with a handful of $100 notes, indicating strong dividend payments
Dividend Investing

Here are top 2 ASX dividend shares with growing yields

These dividend shares are expected to grow nicely in the coming years...

Read more »

Woman holding $50 notes and smiling.
Dividend Investing

Should investors buy Bendigo Bank shares for dividends?

With its high dividend yield, is Bendigo Bank actually the best bank for income?

Read more »

A sophisticated older lady with shoulder-length grey hair and glasses sits on her couch laughing while looking at her ASX 200 shares rising on her phone
Dividend Investing

Experts name 2 ASX dividend shares to buy next week

These dividend shares have been rated as buys...

Read more »

A mature aged man with grey hair and glasses holds a fan of Australian hundred dollar bills up against his mouth and looks skywards with his eyes as though he is thinking what he might do with the cash.
Dividend Investing

Everything you need to know about the latest IAG dividend

What are the details surrounding IAG's latest dividend?

Read more »