The good news for income investors is that there are plenty of quality ASX dividend shares to choose from on the Australian share market.
Two in particular that could be top buys when the market reopens next week are listed below. Here's why analysts say these could be dividend shares to buy:
Aurizon Holdings Ltd (ASX: AZJ)
The first ASX dividend share that could be a buy next week is Aurizon.
It is Australia's largest rail freight operator. It connects miners, primary producers, and industry with international and domestic markets via its vast national rail and road network.
Macquarie is positive on Aurizon. Earlier this month, the broker reiterated its outperform rating with an improved price target of $4.05.
The broker believes that Aurizon is well-placed to pay attractive dividends in the coming years. It is forecasting partially franked dividends of 14.8 cents per share in FY 2023 and then 19.8 cents per share in FY 2024. Based on the latest Aurizon share price of $3.76, this will mean yields of 3.9% and 5.25%, respectively.
Coles Group Ltd (ASX: COL)
Another ASX dividend share that could be a buy next week is Coles. It is of course one of Australia's big two supermarket operators.
The team at Citi is bullish on the company and believes it is well-placed to deliver solid earnings growth through to at least FY 2025. For this reason, the broker currently has a buy rating and $20.20 price target on its shares.
Based on Coles paying out in the region of 80% to 85% of its earnings to shareholders, Citi expects fully franked dividends per share of 69 cents in FY 2023, 73 cents in FY 2024, and then 80 cents in FY 2025. So, with the Coles share price currently trading at $18.09, this would mean yields of 3.8%, 4% and 4.4%, respectively.
