Are you looking for ASX dividend shares to buy next week? Listed below are two ASX dividend shares that brokers rate as buys.
Here's why the analysts are bullish on these dividend shares:
Adairs Ltd (ASX: ADH)
According to a note out of Goldman Sachs, its analysts have a buy rating and $2.65 price target on this furniture and homewares retailer's shares. Goldman believes that the market is too bearish on Adairs and is overlooking the resilience of its core business. It said:
We view the re-affirmed guidance as a key positive for ADH, and we believe the market is pricing in EBIT that is 11-21% below the guidance range, and 12% below GSe. We view the core Adairs business as resilient in the current environment and do not believe the c.40% discount to discretionary retail peers is justified.
One positive from its share price weakness is that the broker is expecting some big yields in the coming years. Goldman is forecasting fully franked dividends per share of 17 cents in FY 2023 and 20 cents in FY 2024. Based on the latest Adairs share price of $2.25, this will mean yields of 7.6% and 8.9%, respectively.
QBE Insurance Group Ltd (ASX: QBE)
A note out of Morgans reveals that its analysts have retained their add rating and $14.89 price target on this insurance giant's shares. This followed the release of a disappointing catastrophe claims update last week.
The broker believes that QBE has done relatively well given the very volatile year for weather. In light of this, it remains positive and believes the company is well-placed to benefit from premium increases, rising rates, and cost outs. It commented:
We believe tailwinds such as rising bond yields, premium rate increases and cost out will drive an improved earnings profile for QBE over the next few years. The stock also remains inexpensive trading on ~10x FY23F earnings.
In respect to dividends, the broker is expecting a 42.6 cents per share dividend in FY 2022 and then a 90.3 cents per share dividend in FY 2023. Based on the latest QBE share price of $13.02, this equates to yields of 3.3% and 6.9%, respectively.
