Why experts rate these top ASX dividend shares as buys

Here are two dividend shares rated as buys…

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Are you looking for dividend shares to buy in July? 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 Athlete’s Foot, HYPEDC, Pivot, Platypus, Sneaker Lab, and Stylerunner.

Due to concerns over tough trading conditions caused by supply chain challenges and weaker consumer spending, Accent’s shares have fallen materially this year. While this is disappointing, analysts at Bell Potter appear to see it as a buying opportunity. Its analysts recently reiterated their buy rating and $2.20 price target. They said:

AX1 is currently trading on 9.8x FY23e P/E (BPe) which we think looks conservative given its dominant market share in the Australian footwear retailing industry and growth outlook in the youth focused sports apparel vertical.

As for dividends, Bell Potter 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 $1.27, this will mean yields of 4.55% and 8%.4, respectively.

Woolworths Group Ltd (ASX: WOW)

Another ASX dividend share share that could be in the buy zone is retail giant Woolworths.

Goldman Sachs is a fan of the company and believes its outlook remains positive even in the current environment. The broker recently reiterated its buy rating and $41.70 price target on the company’s shares.

Goldman is forecasting solid sales and earnings growth through to FY 2024. It explained:

We are encouraged by the resilience and superior operations of WOW and reiterate our unchanged FY22-24e Sales and EPS CAGR of 6.9% and 14.9% respectively. We expect this to be driven by high price growth, well protected GPM and slight EBIT margin expansion as COVID costs roll-off and cost efficiencies continue.

As for dividends, Goldman Sachs estimates that Woolworths’ shares will provide investors with fully franked dividend yields of 2.6% in FY 2022 and 3.25% in FY 2023.

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 Accent Group. 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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