If you're looking for some safe ASX dividend shares to buy in this tough economic environment, then read on!
Listed below are two ASX dividend shares that appear well-placed to continue their growth even if there's a recession in 2023. Here's what analysts are saying about these shares:
Coles Group Ltd (ASX: COL)
The first ASX dividend share that could be in the buy zone is supermarket and liquor retailing giant Coles.
It has been tipped to continue performing strongly in the current environment thanks to its defensive qualities and positive exposure to inflation.
In addition, its refreshed strategy and the recent agreement to sell its fuel and convenience business are expected to support its growth in the coming years. The team at Citi expects that the latter's "proceeds will be invested into the business (e.g. accelerate store renewals, lift omni-channel capability)."
In light of this, the broker recently put a buy rating and $18.90 price target on its shares.
As for dividends, Citi is expecting Coles to pay a 72 cents per share dividend in FY 2023 and a 77 cents per share dividend in FY 2024. Based on the current Coles share price of $16.87, this will mean fully franked yields of 4.25% and 4.55%, respectively, for investors.
Rural Funds Group (ASX: RFF)
Another ASX dividend share that could be a buy is Rural Funds.
It is the owner of a portfolio of agricultural assets across a number of agricultural industries including orchards, vineyards, water entitlements, cropping, and cattle farms.
Rural Funds appears well-placed for long term growth thanks to robust demand for its properties and their long term leases that include periodic rental increases. The latter is supportive of the company's aim of growing its dividend by a target rate of 4% each year.
The team at Bell Potter expects this to underpin dividends of 11.7 cents per share in FY 2023 and then 12.7 cents per share in FY 2024. Based on the current Rural Funds share price of $2.44, this represents yields of 4.8% and 5.2%, respectively.
The broker also sees value in the Rural Funds share price at the current value, noting that it is trading at a "discount to adjusted NAV [that] reflects what historically would be considered an attractive entry point." Bell Potter has a buy rating and $2.75 price target on its shares.
