If you're looking to boost your income portfolio in August, then you may want to look at the shares listed below.
Here's why these ASX dividend shares could be worth considering right now:
Baby Bunting Group Ltd (ASX: BBN)
The first ASX dividend share that could be a good option for income investors is leading baby products retailer Baby Bunting.
It could be a top option due to its dominant position in a less discretionary side of the retail industry. After all, as long as people are having babies, they are going to need prams and other similar products.
It is partly for this reason that the team at Citi are positive on the company. This month, the broker responded to Baby Bunting's full year results by retaining its buy rating with a reduced price target of $5.62.
Although the company's profits were a touch short of the broker's expectations, its analysts were pleased to see Baby Bunting's gross margin increase meaningfully. This was driven by its expansion into higher margin areas and the new national distribution centre.
Looking ahead, the broker appears to believe the company is well-placed for growth over the long term thanks to its strong market position and growing addressable market through product range expansions.
As for dividends, Citi is forecasting fully franked dividends per share of 18 cents in FY 2023 and then 22 cents in FY 2024. Based on the current Baby Bunting share price of $4.52, this will mean yields of 4% and 4.9%, respectively.
South32 Ltd (ASX: S32)
Another ASX dividend share that could be a top option is mining giant South32.
Thanks partly to its diverse operations that have exposure to the decarbonisation megatrend, South32 has been tipped to pay big dividends in the coming years.
One of those tipping big dividends is Morgans. It is a big fan of the company and currently has an add rating and $6.00 price target on the miner's shares. It sees "attractive long-term value potential in S32 from de-risking of its growth portfolio" and "the potential for further portfolio changes."
As for dividends, the broker is forecasting fully franked dividends per share of 27.8 cents in FY 2022 and 34.8 cents in FY 2023. Based on the current South32 share price of $4.18, this will mean yields of 6.7% and 8.3%, respectively.
