2 excellent ASX dividend shares that experts rate as buys

Here are two dividend shares rated as buys…

| More on:
a man in a snappy business suit looks disappointed as he counts bank notes in his 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

Are you looking for dividend shares to buy this month? If you are, then you might want to look at the shares listed below.

Here’s why these ASX dividend shares could be worth considering right now:

Accent Group Ltd (ASX: AX1)

The first ASX dividend shares to look at is Accent. It is a footwear focused retailer that owns a growing collection of store brands. These include HYPEDC, Pivot, Platypus, Sneaker Lab, and Stylerunner.

Accent’s shares have fallen materially this year due to tough trading conditions in the retail sector. While this is disappointing, the team at Bell Potter appear to see it as a buying opportunity.

This morning the broker reiterated its buy rating and $2.20 price target on the retailer’s shares. It notes that Accent has a ~30% market share of the $3 billion Australian footwear market and sees a major opportunity in the fast-growing $5 billion apparel market.

As for dividends, it is forecasting fully franked dividends of 5.8 cents per share in FY 2022 and then 10.7 cents per share in FY 2023. Based on the current Accent share price of $1.34, this will mean yields of 4.3% and 8%, respectively.

Westpac Banking Corp (ASX: WBC)

Another ASX dividend share that could be a buy is Westpac. It is Australia’s oldest bank and one of the big four. It is also responsible for the Bank of Melbourne, Bank SA, St Georges, and Rams brands.

It could be a top option due to its improving outlook as rates rise in Australia and the economy recovers from the pandemic.

Analysts at Citi are very positive on the bank and have a buy rating and $29.00 price target on its shares. They were particularly pleased with Westpac’s recent half-year results, which came in well ahead of expectations. The broker also highlights that management is holding firm with its cost reduction plans despite the bank’s rivals abandoning their own targets.

All in all, Citi believes this leaves Westpac well-placed to deliver “the strongest EPS growth in the sector.”

In respect to dividends, Citi is forecasting a fully franked $1.23 per share dividend in FY 2022 and then a $1.53 per share dividend in FY 2023. Based on the current Westpac share price of $24.00, this will mean yields of 5.1% and 6.4%, respectively.

Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. 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 Accent Group and Westpac Banking Corporation. 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 woman sits at her computer with her hand to her mouth and a contemplative smile on her face as she reads about the performance of Allkem shares on her computer
Dividend Investing

Will Lynas shares pay a dividend in 2022?

When can investors expect a maiden dividend from the rare earths company?

Read more »

a man leans back in his chair with his arms supporting his head as he smiles a satisfied smile while sitting at his desk with his laptop computer open in front of him.
Dividend Investing

Everything you need to know about the latest BHP dividend

BHP announced another sizeable dividend today. Here are the details.

Read more »

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 »