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If you’re an income investor looking for new dividend-paying stocks to buy, it might be worth checking out the two below.
Here’s why they’re classified as buys right now:
The first ASX dividend stock that could be a buy is Adairs. It is the leading furniture and homewares retailer behind the eponymous Focus on Furniture, Mocka and Adairs brands.
The retailer is going through a tough time this year and is expected to post a sharp decline in profits in fiscal 2022. This was driven by significant COVID-related disruptions across its operations.
However, management remains positive about the future. He points out that “these [disruptions] should not be recurring in the medium term and the underlying business continues to perform well.
That view is shared with analysts at Wilson, who have an overweight rating and $4.50 price target on the company’s stock.
In addition, the broker expects fully franked dividends per share of 19 cents per share in fiscal year 2022 and 31 cents per share in fiscal year 2023. Based on Adairs’ current share price of $2.48 will mean returns of 7.7% and 12.5%, respectively.
Westpac Banking Corp (ASX:WBC)
Another ASX dividend stock that could be a quality option for income investors next week is banking giant Westpac.
It was recently labeled a buy by Goldman Sachs analysts with a price target of $26.12.
The broker believes that Westpac offers high leverage on rising rates. He expects the bank to benefit from the relative lack of domestic deposit repricing seen to date following recent cash rate hikes.
As for dividends, the broker projects fully franked dividends per share of 123 cents for fiscal 2022 and 135 cents for fiscal 2023. Based on Westpac’s current stock price of $21.96, this will mean returns of 5.6% and 6.15%, respectively, over the next two years.