Are you looking for dividend shares to buy? If you are, it could be worth checking out the two listed below.
Here's why they are rated as buys right now:
Adairs Ltd (ASX: ADH)
The first ASX dividend share that could be a buy is Adairs. It is the leading furniture and homewares retailer behind the Focus on Furniture, Mocka, and eponymous Adairs brands.
It's fair to say that FY 2022 was a year to forget for the company. It reported a sharp decline in profits due to significant COVID related disruptions across its operations.
But the worst appears to be behind the company now. It revealed that sales were up almost 45% during the first seven weeks of FY 2023. In light of this, management is guiding to earnings in the range of largely flat to up 11% for the full year.
The team at Jarden remain positive enough to put an overweight rating and $3.28 price target on the company's shares.
As for dividends, the broker is forecasting fully franked dividends per share of 18 cents per share in FY 2023 and 22 cents per share in FY 2024. Based on the current Adairs share price of $2.23, this will mean yields of 8% and 9.9%, respectively.
Mineral Resources Limited (ASX: MIN)
Another ASX dividend share to look at is mining and mining services company Mineral Resources. It could be a decent option for income investors that aren't averse to investing in the resources sector.
This is because Mineral Resources has a growing exposure to lithium, which is helping to offset its struggling iron ore business.
It is because of its lithium operations that Goldman Sachs is very positive on the company. In fact, the broker is forecasting the more than doubling of group EBITDA to over $2.3 billion in FY 2023 thanks largely to these operations.
Goldman has a buy rating and $69.50 price target on its shares, which implies meaningful upside over the next 12 months.
In addition, the broker has pencilled in fully franked dividends of 192 cents per share in FY 2023 and then 107 cents per share in FY 2024. Based on the latest Mineral Resources share price of $58.71, this will mean yields of 3.3% and 1.8%, respectively.
And while the latter yield may not be exciting, patient investors should be rewarded. Goldman expects growth thereafter and a 5%+ yield by FY 2027.
