Are you looking for dividends shares to buy? If you are, then take a look at the two listed below which are rated as buys.
Here's what you need to know about these growing dividend shares:
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Janus Henderson Group (ASX: JHG)
The first ASX dividend share to look at is fund manager Janus Henderson.
Although Janus Henderson has been facing a number of challenges, the team at Bell Potter believes that now could be the time to buy before the tide turns.
Bell Potter said:
Falls in investment markets have reduced AUM and profitability. The appearance of an activist investor has not led to corporate activity which may have disappointed some investors. The change of CEO means a new strategy and that will take time to deliver tangible results.
But now might be a good time to revisit: markets should start to recover; the company has a new direction and there is still the prospect of M&A (we feel JHG could easily be swallowed by a larger group).
The broker has a buy rating and $43.50 price target on the company's shares.
As for dividends, Bell Potter is forecasting dividends per share of 190 cents in FY 2022 and 172 cents in FY 2023. Based on the current Janus Henderson share price of $31.54, this will mean yields of 6% and 5.45% respectively.
Medibank Private Ltd (ASX: MPL)
Another ASX dividend share that has been tipped as a buy is private health insurer Medibank.
Analysts at Citi were pleased with Medibank's full year results in August. It expects this strong form to continue thanks to the Medibank Health business, which is targeting a profit growth rate of at least 15%, and higher interest rates.
Citi commented:
Medibank's PHI business is performing well and we forecast an outlook of largely stable margins paired with reasonable top line growth. Medibank Health is also targeted to grow profit at a rate of at least 15% and higher interest rates should provide a reasonable tailwind for investment income. This keeps us attracted to the Medibank story despite value being reasonable rather than cheap.
The broker has a buy rating and $4.00 price target on the company's shares.
Pleasingly, Citi is also expecting Medibank's shares to provide attractive dividend yields in the near term. Its analysts are forecasting fully franked dividends of 15.9 cents per share in FY 2023 and 16.3 cents per share in FY 2024. Based on the current Medibank share price of $3.52, this will mean yields of 4.5% and 4.6%, respectively.
