Are you looking for dividend shares to add to your income portfolio this week? If you are, then the two listed below could be worth considering.
Here’s what you need to know about these buy-rated dividend shares:
Mineral Resources Limited (ASX: MIN)
The first ASX dividend share to look at is Mineral Resources. It is a mining and mining services company with exposure to two in-demand commodities – iron ore and lithium.
It is because of this exposure and its production growth plans that Goldman Sachs is very bullish on Mineral Resources. It currently has a buy rating and $73.00 price target.
Goldman is 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.”
In respect to dividends, Goldman expects this to lead to 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 $48.31, this will mean yields of 1.3% and 5%, respectively.
Wesfarmers Ltd (ASX: WES)
Another ASX dividend share that could be in the buy zone is Wesfarmers. It is the conglomerate behind businesses including Bunnings, Catch, Covalent Lithium, Kmart, Officeworks, and Priceline.
Its shares have been hit hard this year amid concerns that rising inflation and interest rates could impact consumer spending. However, the team at Morgans aren’t concerned and recently reiterated their add rating and $58.40 price target on its shares.
Its analysts believe Wesfarmers’ Kmart business is well-placed in the current environment. They explained:
With value expected to become increasingly important, we think Kmart is well-placed to benefit with the average price of an item at around $6-7.
As for dividends, the broker is forecasting a fully franked dividend of $1.65 per share in FY 2022 and then a $1.81 per share dividend in FY 2023. Based on the current Wesfarmers share price of $42.40, this equates to yields of 3.9% and 4.25%, respectively, over the next two financial years.