If you're looking for ASX dividend shares to buy, then the two listed below could be worth considering.
Here's what you need to know about these dividend shares:
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 such as Athlete's Foot, HYPEDC, Platypus, Sneaker Lab, and Stylerunner.
Unfortunately, due to tough trading conditions caused by supply chain challenges and weaker consumer spending, Accent's shares have fallen hard this year. However, the team at Bell Potter believe investors should look beyond this short term pain and focus more on the long term gains.
The broker recently reiterated its buy rating and $2.20 price target. It said:
We think AX1 has a long runway ahead in terms of the athleisure market opportunity and is well placed to gain share given its accelerated vertical sales strategy. We sit ~6% ahead of consensus NPAT expectations for FY24e primarily driven by higher store based revenues & vertical sales assisted by the Glue Store roll out which in our view should see overall margin expansion through the medium term.
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 $1.34, this will mean yields of 4.3% and 8%, respectively.
HomeCo Daily Needs REIT (ASX: HDN)
Another ASX dividend share that has been rated as a buy is the HomeCo Daily Needs REIT. It is a property company that invests in convenience-based assets across neighbourhood retail, large format retail, and health and services.
Goldman Sachs is a fan of the company and has a buy rating and $1.70 price target on its shares. It recently commented:
We believe HDN is undervalued at its current valuation given its diversified tenant base, and see it as well positioned to benefit from the shift to omni channel retailing, with additional external growth opportunities to drive earnings growth over the medium-term.
The broker is also forecasting dividends per share of 8 cents in FY 2022 and 9 cents in FY 2023. Based on the current HomeCo Daily Needs share price of $1.35, this will mean dividend yields of 5.9% and 6.7%, respectively.
