Are you wanting to add some new dividend shares to your income portfolio? If you are, then the two listed below could be good 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 for income investors to look at is Baby Bunting.
It is a baby products retailer which has carved out a dominant position in this less discretionary category over the last decade.
But management isn't settling for that. It continues to see opportunities to expand its network and also its offering.
The team at Morgans likes what it sees and is very positive on the company. So much so, it has an add rating and $5.00 price target on its shares. It commented:
As the only specialist retailer in the baby category with a national omni-channel presence, we see potential for BBN to increase its 14% share of a $3.5bn market over the medium to long-term.
The broker believes this leaves Baby Bunting well-placed for further earnings and dividend growth in the coming years.
For example, the broker is forecasting fully franked dividends per share of 17 cents in FY 2023 and 19 cents in FY 2024. Based on the current Baby Bunting share price of $3.85, this will mean yields of 4.4% and 4.9%, respectively.
Bank of Queensland Limited (ASX: BOQ)
Another ASX dividend share for income investors to consider is Bank of Queensland.
Thanks to the recent acquisitions of ME Bank and Virgin Money Australia, it is now one of the largest banks outside the big four.
Analysts at Citi are fans of Bank of Queensland. The broker expects cost synergies from the ME Bank acquisition to be supportive of earnings growth even if mortgage loan growth slows as rates rise.
Citi has a buy rating and $8.75 price target on the bank's shares.
As for dividends, the broker is forecasting fully franked dividends per share of 46 cents in FY 2022 and then 50 cents per share in FY 2023. Based on the current Bank of Queensland share price of $6.75, this will mean big yields of 6.8% and 7.4%, respectively.
