Investors that are looking for dividend options might want to check out the two ASX shares listed below.
Both of these ASX dividend shares have recently been tipped as buys with attractive yields. Here's why analysts are bullish:
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Baby Bunting Group Ltd (ASX: BBN)
Baby Bunting could be a dividend share to buy. It is a baby products retailer with a growing presence both online and through its growing collection of national superstores.
Citi is a fan of the company and believes it is well-placed to navigate the tough consumer environment thanks to its strong position in a less discretionary category. It also sees recent expansions into new areas as positives. The broker commented:
We see Baby Bunting well placed to outperform the broader small cap retail sector this year given the non-discretionary nature of its category. […] Further, the stocks growth prospects are in some respects less risky than other high multiple retailers who are relying more on new markets and acquisitions. […] we see growth into toys and babywear categories as a positive for Baby Bunting and provides another strategy for the company to complement its i) rollout, ii) exclusive brands and private label growth, iii) supply chain initiatives.
Last week, its analysts retained their buy rating and $6.22 price target on its shares.
As for dividends, Citi is forecasting fully franked dividends per share of 16 cents in FY 2022 and 19 cents in FY 2023. Based on the current Baby Bunting share price of $4.32, this will mean yields of 3.7% and 4.4%, respectively.
QBE Insurance Group Ltd (ASX: QBE)
Another ASX dividend share that could be in the buy zone is insurance giant QBE.
The team at Morgans recently named the company as one of its best ideas for the month. The broker likes the insurer due to its cheap valuation and positive outlook. Morgans has an add rating and $14.76 price target on the company's shares.
The broker commented:
With strong rate increases still flowing through QBE's insurance book, and further cost-out benefits to come, we expect QBE's earnings profile to improve strongly over the next few years. The stock also has a robust balance sheet and remains relatively inexpensive overall trading on ~14x FY22F PE.
In respect to dividends, the broker has pencilled in a 41.4 cents per share dividend in FY 2022 and then a 66.3 cents per share dividend in FY 2023. Based on the latest QBE share price of $11.92, this equates to yields of 3.5% and 5.6%, respectively
