Are you looking for dividend shares to buy for when the market reopens?
If you are, you may want to take a look at the two listed below that have been rated as buys by brokers. Here's what they are saying:
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Adairs Ltd (ASX: ADH)
The first ASX dividend share to consider is furniture and homewares retailer, Adairs.
Goldman Sachs is very positive on the company and recently retained its buy rating and $2.65 price target. Its analysts believe the company's shares have been oversold and created a buying opportunity for investors. It commented:
We view the re-affirmed guidance as a key positive for ADH, and we believe the market is pricing in EBIT that is 11-21% below the guidance range, and 12% below GSe. We view the core Adairs business as resilient in the current environment and do not believe the c.40% discount to discretionary retail peers is justified.
As for dividends, Goldman is forecasting fully franked dividends per share of 17 cents in FY 2023 and 20 cents in FY 2024. Based on the latest Adairs share price of $2.05, this will mean yields of 8.3% and 9.75%, respectively.
Coles Group Ltd (ASX: COL)
Another ASX dividend share for income investors to consider is supermarket giant, Coles.
A note out of Morgans reveals that its analysts are bullish on Coles and have recently put an add rating and $19.50 price target on them. The broker feels its shares are great value at the current level, particularly given its defensive qualities. Morgans commented:
Trading on 20.6x FY23F PE and 4.0% yield, we continue to see COL as offering good value with the company's solid balance sheet and defensive characteristics putting it in a good position to navigate through a weaker economic environment. The unwinding of local shopping should also help further market share gains.
In respect to dividends, Morgans is forecasting fully franked dividends per share of 64 cents in FY 2023 and 66 cents in FY 2024. Based on the current Coles share price of $16.27, this will mean yields of 3.9% and 4.1%, respectively.
