These are the growing ASX dividend shares to buy now: analysts

Don't settle for flat dividends when you can buy growing dividend shares like these…

| More on:
Couple counting out money

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Analysts have been running the rule over a number of ASX dividend shares recently.

Two that have been tipped as buys are listed below. Here's why they are bullish on them:

Accent Group Ltd (ASX: AX1)

Goldman Sachs is a fan of this footwear and youth apparel retailer and believes it is an ASX dividend share to buy.

The broker is positive on the company due largely to its exposure to younger consumers. It expects Accent's target demographic to continue spending largely as normal in 2023 due to a rise in the minimum wage and their lower exposure to rising interest rates. It commented:

In aggregate, we believe this cohort has an additional ~A$1bn in spending capacity: the combination of minimum wage uplifts and limited inflationary pressures has resulted in an additional ~A$570-930 in annual spending capacity (per person) among the cohort of young adults who work and live at home.

Goldman is expecting this to lead to fully franked dividends of 12.2 cents per share in FY 2023 and 13.5 cents per share in FY 2024. Based on the current Accent share price of $2.07, this will mean yields of 5.9% and 6.5%, respectively.

Goldman has a buy rating and $2.75 price target on the company's shares.

Coles Group Ltd (ASX: COL)

Analysts at Morgans have named this supermarket operator as a buy. Its analysts have an add rating and $19.50 price target on its shares.

Morgans thinks Coles' shares are attractively priced. Particularly given its defensive qualities and the prospect of tough economic times. It explained:

Trading on 20.6x FY23F PE and 4.0% yield, we continue to see COL as offering good value with the company's solid balance sheet and defensive characteristics putting it in a good position to navigate through a weaker economic environment. The unwinding of local shopping should also help further market share gains.

And while a recent rise in the Coles share price means that it won't quite offer a 4% yield now, it isn't far off. Morgans expects a fully franked dividend of 64 cents per share in FY 2023 and a fully franked dividend of 66 cents per share in FY 2024. Based on the current Coles share price of $17.97, this will mean yields of 3.6% and 3.7%, respectively.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Coles Group. The Motley Fool Australia has recommended Accent Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Dividend Investing

A mature-aged couple high-five each other as they celebrate a financial win and early retirement
Dividend Investing

5 top ASX dividend shares to buy right now

Analysts think income investors should be loading up on these shares.

Read more »

Two adults and a child look happy as they walk through airport with child sitting on suitcase.
Dividend Investing

Will Qantas shares pay a dividend in 2024?

Will the dividends return this year? Let's find out.

Read more »

A woman sits at her computer with her chin resting on her hand as she contemplates her next potential investment.
Dividend Investing

2 market-leading ASX dividend stocks to buy in April

Analysts have put buy ratings on these market-leaders.

Read more »

Father in the ocean with his daughters, symbolising passive income.
Dividend Investing

I'd spend $8k on these ASX 200 shares today to target a $6,102 annual passive income

I believe these ASX 200 shares will continue rewarding passive income investors for years to come.

Read more »

Man holding Australian dollar notes, symbolising dividends.
ETFs

Want the latest dividend from the Vanguard Australia Shares ETF (VAS)? Here's what you have to do

If you want to bag the latest VAS dividend, here's what you need to do.

Read more »

A smiling businessman in the city looks at his phone and punches the air in celebration of good news.
Dividend Investing

Investing for passive income? Keep any eye out for that boosted Telstra dividend today!

If you own Telstra shares, keep an eye out for that juicy dividend payout today.

Read more »

A happy construction worker or miner holds a fistfull of Australian money, indicating a dividends windfall
Dividend Investing

Invest $12,000 in Woodside stock and get $5,700 in passive income

Reliable dividend shares are everywhere on the ASX. Here's how you could use that to your advantage.

Read more »

Australian dollar notes in businessman pocket suit, symbolising ex dividend day.
Dividend Investing

3 ASX 300 dividend shares to buy in April

These shares have been named as buys by brokers and tipped to offer very attractive yields.

Read more »