Investors that are looking for dividend options might want to check out the two ASX shares listed below.
That’s because both of these ASX dividend shares have recently been tipped to as buys with attractive yields. Here’s why analysts are bullish:
Baby Bunting Group Ltd (ASX: BBN)
Baby Bunting could be a dividend share to buy. It is a baby products retailer with a strong presence both online and through its growing collection of national superstores.
Citi is a fan of the company and believe its strong growth outlook deserves a premium valuation.
It 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.”
The broker currently has a 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 $4.37, this will mean yields of 3.7% and 4.3%, respectively.
Mineral Resources Limited (ASX: MIN)
Mineral Resources could be another ASX dividend share to buy. It is a mining and mining services company with exposure to iron ore and lithium.
Analysts at Goldman Sachs are very positive on the company. This is due to the broker forecasting the “more than doubling of group EBITDA to over A$2bn in FY23 driven by higher lithium and low grade iron ore prices, and a 5% increase to mining services volumes to ~300Mt.”
Its analysts currently have buy rating and $73.00 price target on its shares.
Furthermore, Goldman is forecasting fully franked dividends of 78 cents per share in FY 2022 and then 272 cents per share in FY 2023. Based on the latest Mineral Resources share price of $48.71, this will mean yields of 1.6% and 5.6%, respectively.
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