Are you looking for dividend shares to add to your income portfolio? If you are, then the two listed below could be quality options.
Analysts have recently rated these dividend shares as buys. Here's what you need to know about them:
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Baby Bunting Group Ltd (ASX: BBN)
The first ASX dividend share to look at is baby products retailer Baby Bunting.
It could be a top option for income investors thanks to its leadership position in a less discretionary category.
It is for this reason and its recent expansions into new categories that the team at Citi are very positive on the company and have a buy rating and $6.22 price target on its shares. They believe Baby Bunting is "well placed to outperform the broader small cap retail sector this year" and its "growth prospects are in some respects less risky than other high multiple retailers who are relying more on new markets and acquisitions."
As for dividends, the broker is forecasting fully franked dividends per share of 16 cents in FY 2022 and 19 cents in FY 2023. Based on the current Baby Bunting share price of $4.88, this will mean yields of 3.3% and 3.9%, respectively.
Wesfarmers Ltd (ASX: WES)
Another ASX dividend share that is highly rated is Wesfarmers. It is the conglomerate behind a collection of businesses including Bunnings, Catch, Covalent Lithium, Kmart, Officeworks, and Priceline.
The team at Morgans are very positive on the company. They believe Wesfarmers is well-placed to navigate the tough retail environment due to its value offering. Morgans also likes the company due to it having "one of the highest quality retail portfolios in Australia" and a "highly regarded management team."
The broker currently has an add rating and $58.40 price target on its shares.
In respect to dividends, Morgans is forecasting fully franked dividends per share of $1.65 in FY 2022 and $1.81 in FY 2023. Based on the current Wesfarmers share price of $47.57, this will mean yields of 3.5% and 3.8%, respectively.
