If you're looking for dividend shares to buy this week, then the two blue chips listed below could be worth checking out.
Here's what you need to know about these dividend shares:
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Coles Group Ltd (ASX: COL)
The first ASX dividend share that brokers think is a buy is supermarket giant Coles.
Morgans is very positive on the company and has an add rating and $19.60 price target on its shares. Its analysts were happy with Coles' half-year results and the stronger than expected performance from its supermarkets segment.
In light of this and its defensive qualities, the broker believe it is a share buy now. It said:
Trading on 22.5x FY24F PE and 3.6% yield, we continue to see COL as offering good value with the company's healthy balance sheet and defensive characteristics putting it in a good position to navigate through a weaker economic environment. In our view, the unwinding of local shopping trends should continue to be a tailwind and further trading down from consumers will also be positive given COL's strong Own Brand offering.
As for dividends, the broker is forecasting fully franked dividends per share of 66 cents in both FY 2023 and FY 2024. Based on the current Coles share price of $17.35, this represents yields of 3.8% for both years.
South32 Ltd (ASX: S32)
Another ASX dividend share that has been named as a buy is South32.
It is one of Australia's largest miners with exposure to a range of commodities including aluminium, copper, manganese, and nickel.
Citi is positive on South32 and has a buy rating and $5.05 price target on the mining giant's shares. It was pleased with its half-year results and sees plenty of value in its shares at the current level. Citi explained:
1H FY23 profit of US$560m was better than expected. Importantly, FY23 prodn and cost guidance was maintained. FY24 prodn guidance points to modestly higher output in FY24. Dividend was modestly lower than expected at a 40% payout ratio. Buyback was extended with US$158m remaining and net debt of $298m. […] We raise our TP to $5.05 and stay Buy rated. We believe S32 has not yet run to full valuation levels trading on FY24E EV/EBITDA of 4x vs peers at >5x.
As for dividends, Citi is forecasting fully franked dividends per share of 28 cents in FY 2023 and 33 cents in FY 2024. Based on the current South32 share price of $4.16, this will mean yields of 6.7% and 7.9%, respectively.
