Analysts say these ASX dividend shares are buys

These ASX dividend shares could be buy according to analysts…

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

If you're wanting to boost your income with some dividend shares, then you might want to consider the two listed below.

Here's what you need to know about these dividend shares:

A couple sits in their lounge room with a large piggy bank on the coffee table. They smile while the male partner feeds some money into the slot while the female partner looks on with an iPad style device in her hands as though they are budgeting.

Image source: Getty Images

Accent Group Ltd (ASX: AX1)

The first ASX dividend share for investors to look at is footwear retailer Accent.

After a very tough time in FY 2022, Accent appears to be back on track this year. Its recent full year results release revealed that like for likes sales were up strongly during the early stages of FY 2023.

The team at Bell Potter remain very positive on the company and recently put a buy rating and $2.00 price target on its shares. It commented:

The first 7 weeks of FY23 has seen positive like-for-like (LFL) sales +18.9% vs the -16% LFL sales growth for the same period in FY22 and -13% for 1H22. The company's focus on achieving full gross margins was encouraging as the company executes on a disciplined growth strategy to sustain earnings growth.

Bell Potter is also forecasting some attractive dividend yields in the coming years. It is expecting fully franked dividends of 9.5 cents per share in FY 2023 and 12.7 cents per share in FY 2024. Based on the current Accent share price of $1.43, this would mean yields of 6.6% and 8.8%, respectively, over the next couple of years.

Harvey Norman Holdings Limited (ASX: HVN)

Another ASX dividend share that could be in the buy zone is fellow retailer Harvey Norman.

Analysts at Goldman Sachs rate the company highly and have named it as a buy recently with a $4.80 price target. The broker continues to believe that Harvey Norman is well-placed to defend its strong market position from online disruption thanks to its favourable customer demographics. It expects this to support stronger than consensus earnings in FY 2023. Goldman explained:

Our FY23 NPAT is +7% vs FactSet consensus and our TP implied ex-property FY24E P/E of ~5x with dividend yield of 8%. We believe that HVN offers 21% TSR at an attractive valuation; reiterate buy.

Another positive is that the broker expects Harvey Norman to provide investors with generous dividends in the near term. It is forecasting fully franked dividends per share of 38 cents in FY 2023 and 32 cents in FY 2024. Based on the current Harvey Norman share price of $4.42, this will mean yields of 8.6% and 7.2%, respectively.

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 positions in and has recommended Harvey Norman Holdings Ltd. The Motley Fool Australia has positions in and has recommended Harvey Norman Holdings Ltd. 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.

More on Dividend Investing

A man surrounded by huge piles of paper looks through a magnifying glass at his computer screen.
Dividend Investing

As the ASX indexes sink, these unique dividend shares are making investors money

The share price of these two dividend stocks has jumped higher over the past month.

Read more »

A woman looks nonplussed as she holds up a handful of Australian $50 notes.
Dividend Investing

How to invest $10,000 in ASX dividend shares in 2026

A strong income portfolio starts with the right mix. Here’s how I’d allocate my money.

Read more »

Man holding out Australian dollar notes, symbolising dividends.
Dividend Investing

2 monthly income ETFs with yield reaching as high as 9%

These ASX EFTs pay their investors every single month.

Read more »

$50 dollar Australian notes in the back pocket of jeans, representing dividends.
Dividend Investing

3 ASX dividend shares yielding 9% (or more)

These dividend-paying shares offer a great yield and potential for growth.

Read more »

Man holding a calculator with Australian dollar notes, symbolising dividends.
Dividend Investing

2 ASX dividend shares with yields above 7%

Large yields and potential capital growth. What’s not to love?

Read more »

Australian dollar notes in the pocket of a man's jeans, symbolising dividends.
Dividend Investing

These buy-rated ASX dividend stocks are forecast to pay 6%+ yields in 2027

Analysts have buy ratings on these high-yield stocks. Let's see what they offer.

Read more »

a man sits back from his laptop computer with both hands behind his head feeling happy to see the Brambles share price moving significantly higher today
Dividend Investing

3 ASX dividend shares to double up on right now

Analysts have buy ratings on these top income stocks.

Read more »

Man holding out $50 and $100 notes in his hands, symbolising ex dividend.
Dividend Investing

Passive income investors: This ASX stock has an 8% yield and monthly payouts

The shares climbed higher on Tuesday.

Read more »