Buy and hold investing with ASX dividend shares is one of the best ways to grow your wealth.
This is because it allows you to benefit from the power of compounding, which is what happens when you generate returns on top of returns.
In addition, as a company's dividend grows, so too does your source of income.
For example, imagine if you had invested $10,000 into Accent Group Ltd (ASX: AX1) shares 10 years ago. You would have been able to pick up its shares for 59 cents each, which means you would own 16,949 units today.
Bell Potter is forecasting a fully franked dividend of 13 cents per share in FY 2024. This means those 16,949 units would generate $2,203.37 of dividend income.
But it gets better. With Accent shares currently changing hands for close to $2.00, your holding would have a market value of almost $34,000. That's significantly more than your original $10,000 investment.
But which ASX dividend shares could be good options for investors making long-term investments today? Let's take a look at three shares that analysts rate as buys.
3 ASX dividend shares to buy and hold
The first one is the subject of our example above, footwear retailer Accent Group. It appears well-positioned to continue its long-term growth thanks to its market leadership and growing store footprint.
It is partly for these reasons that Bell Potter has a buy rating and a $2.50 price target on its shares. It also expects dividend yields of approximately 6.6%, 7.5%, and 8.4% over the next three years.
Another ASX dividend share to consider buying for the long term is Coles Group Ltd (ASX: COL).
Morgans is a fan of the supermarket giant and has an add rating and $18.70 price target on its shares. As for dividends, it is forecasting fully franked yields of 4.1% in FY 2024 and 4.3% in FY 2025.
A final ASX dividend share for investors to look at is Webjet Ltd (ASX: WEB). It is a leading online travel booker with operations across the world.
Thanks largely to its B2B WebBeds business, analysts at Goldman Sachs believe it could be destined for very strong long-term growth.
And while the broker isn't expecting a dividend this year, it believes they will resume in FY 2025. Goldman Sachs is forecasting dividends per share of 17 cents that year and then 20 cents in FY 2026. This will mean yields of 2% and 2.3%, respectively.
Goldman has a buy rating and a $9.20 price target on Webjet's shares.
