If you're wanting to add some dividend shares to your portfolio, then you may want to look at the two named below.
Here's what you need to know about these buy-rated ASX dividend shares:
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Accent Group Ltd (ASX: AX1)
The first ASX dividend share for income investors to look at is footwear and youth fashion retailer Accent.
It owns a growing portfolio of brands including HypeDC, Glue Store, Platypus, Stylerunner, and The Athlete's Foot.
Bell Potter is positive on the retailer and has a buy rating and $2.10 price target on its shares. Its analysts were pleased with Accent's start to FY 2023, commentng:
Accent Group (AX1) provided a trading update for the first 18 weeks of FY23, Group owned sales +52% on pcp and Gross margins +570bps vs down 700bps in the pcp. We see this as a solid start and expect AX1 to be well positioned as tougher comps are faced in Nov/Dec. We view the performance into the key seasonal period to be supported by the company's healthy inventory position as per company's commentary.
In respect to dividends, Bell Potter is expecting fully franked dividends of 10 cents per share in FY 2023 and then 12 cents per share in FY 2024. Based on the current Accent share price of $1.83, this would mean yields of 5.5% and 6.6%, respectively,
Elders Ltd (ASX: ELD)
Another ASX dividend share that could be a buy is Elders. It is one of Australia's leading agribusiness companies.
Goldman Sachs is positive on the company and has a conviction buy rating and $18.40 price target on its shares. The broker believes Elders' share price weakness in 2022 was unwarranted and sees it as a buying opportunity. It said:
We view the share price reaction […] as unwarranted. The fundamentals of this company remain unchanged, and strong in our view. The Australia agricultural environment is structurally strong and ELD is uniquely placed to benefit as a highly diversified Agribusiness with broad geographic and segment exposure. Farmer balance sheets and industry data are showing strong intentions for investment and expanded production in the context of a tightening global agricultural market.
In respect to dividends, the broker is expecting fully franked dividends per share of 53 cents in FY 2023 and 57 cents in FY 2024. Based on the current Elders share price of $9.90, this will mean yields of 5.35% and 5.75%, respectively.
