If you're looking for ASX dividend shares to buy, I think there are a couple of interesting opportunities worth considering.
Let's take a closer look at two popular options and see whether they deserve a place in your portfolio.
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Coles Group Ltd (ASX: COL)
Coles shares have come under pressure following a disappointing first-quarter trading update, but I think the recent weakness could be a buying opportunity.
The supermarket giant reported sales growth of 3.6%, but warned that increased competition, higher fuel costs, and additional investment in lower prices would weigh on earnings.
As a result, management expects first-half supermarket earnings to be broadly flat compared with last year.
While this isn't ideal, I think Coles is making the right decision by prioritising its competitive position over short-term profit growth.
After all, winning customers back through better prices could deliver benefits for years to come, even if it temporarily reduces profit margins.
Morgans appears to agree. Although the broker has reduced its earnings forecasts and price target following the update, it has maintained its accumulate rating with a $24.30 price target.
For income investors, Morgans is forecasting dividends per share of 84 cents in FY 2027 and 91 cents in FY 2028.
Based on the current Coles share price of $21.62, this represents forward dividend yields of approximately 3.9% and 4.2%, respectively.
I think that makes Coles an attractive option for investors seeking a combination of reliable income and potential capital growth.
Pinnacle Investment Management Group Ltd (ASX: PNI)
Another ASX dividend share I'd be happy to buy is investment management company Pinnacle.
Its latest quarterly update revealed that funds under management increased by $8.7 billion to $238.1 billion. This was supported by net inflows of $5.9 billion.
Although this was slightly below expectations, I think there's an encouraging story behind these figures.
With market movements having little overall impact during the quarter, Pinnacle's growth was largely driven by investors putting more money into its affiliated investment managers.
This suggests its businesses are continuing to attract customers, rather than simply benefiting from rising share markets.
And I believe that puts Pinnacle in a strong position to grow its earnings and dividends over the coming years.
Morgans is also positive, retaining its buy rating despite trimming earnings forecasts by 2% to 4%. The broker has a $22.62 price target on its shares, which implies approximately 43% upside from the current share price of $15.81.
As for income, Morgans forecasts dividends of 57 cents per share in FY 2027 and 85 cents in FY 2028. This equates to forward dividend yields of 3.6% and 5.4%, respectively.
While earnings from investment management can fluctuate with markets and fund performance, I think Pinnacle's growing international presence and ability to attract new funds make it a compelling long-term investment.
And with substantial share price upside and growing dividends on offer, I believe now could be an excellent time to consider buying.
