If you're looking for dividend shares to buy to boost your passive income, then you may want to look at the two listed below.
Here's why analysts at Goldman Sachs rate these growing ASX dividend shares highly:
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Universal Store Holdings Ltd (ASX: UNI)
The first ASX dividend share that has been tipped as a buy is Universal Store. It is a growing retailer focused on youth fashion through the Universal Store and Thrills brands.
Goldman Sachs is a fan of the company due to the company's exposure to younger consumers, which it expects to continue spending in 2023. It explained:
We believe the young Australian consumer is uniquely resilient to inflationary and broader economic pressures given (1) a high proportion live at home; (2) more than two-thirds are working; (3) high and increasing minimum wage entitlements and; (4) a heavy skew towards discretionary spending.
In respect to dividends, the broker is expecting fully franked dividends of 27.2 cents in FY 2023 and 29.9 cents in FY 2024. Based on the latest Universal Store share price of $5.87, this equates to yields of 4.6% and 5.1%, respectively.
Goldman Sachs currently has a buy rating and $7.55 price target on its shares.
Woolworths Limited (ASX: WOW)
Another ASX dividend share that Goldman Sachs thinks investors should buy is Woolworths.
Its analysts are positive on the retail giant due to its strong market position, customer loyalty, and omni-channel advantage. It explained:
We are Buy rated (on Conviction List) on the stock as we believe the business has one of the highest consumer stickiness and loyalty among peers, and hence has strong ability to drive market share gains via its omni-channel advantage, as well as pass through any cost inflation to protect its margins, beyond market expectations.
As for dividends, Goldman is forecasting fully franked dividends of $1.02 per share in FY 2023 and $1.13 per share in FY 2024. Based on the current Woolworths share price of $36.51, this will mean yields of 2.8% and 3.1%, respectively.
Goldman currently has a conviction buy rating and $41.20 price target on the company's shares.
