Are you looking for some new additions to your income portfolio in February?
If you are, then the two ASX 300 dividend shares in this article could be worth a closer look.
Here's what analysts are saying about these buy-rated shares right now:
Accent Group Ltd (ASX: AX1)
The first ASX dividend share that has been given a buy rating by analysts is footwear-focused retailer Accent.
The team at Bell Potter is positive on the company due to its domination of the local market. It recently stated:
Accent Group commands a dominant ~30% market share in the $3b Australian footwear retailing market, in addition to a broader opportunity given the expansion into the athleisure market via its own brands. We continue to view AX1 as a key pick in our retail sector coverage given their scale as Australia's market leader, growth adjacencies in both footwear/ apparel from exclusive partnerships & TAF channel conversion and growing vertical brand strategy led by Nude Lucy.
The broker believes this positions Accent to pay fully franked dividends per share of 13.7 cents in FY 2025 and then 15.6 cents in FY 2026. Based on the latest Accent share price of $2.34, this represents dividend yields of 5.9% and 6.7%, respectively.
Bell Potter has a buy rating and $2.75 price target on its shares.
Santos Ltd (ASX: STO)
Another ASX 300 dividend share that analysts have named as buys is Santos.
It is one of the leading independent oil and gas producers in the Asia-Pacific region, supplying energy needs across Australia and Asia.
Ord Minnett is bullish due to the energy giant's positive free cash flow (FCF) outlook, which is being underpinned by the Pikka and Barossa LNG operations. The broker recently said:
An estimated FCF yield of 20% once Pikka and Barossa LNG start producing, and rigorous control of how that extra cash is spent, implies to us that Santos will have plenty of room to return excess capital to shareholders either via an increased payout ratio or share buybacks. In our view, the medium-term prospects for Santos offer a compelling investment opportunity.
The broker expects this to allow Santos to pay dividends per share of 41 cents in FY 2024 and then 44 cents in FY 2025. Based on the current Santos share price of $7.12, this would mean dividend yields of 5.75% and 6.2%, respectively.
Ord Minnett currently has a buy rating and $8.50 price target on the company's shares.
