Looking for ASX dividend shares to buy and hold? Then check out the two listed below.
They have been named as buys and tipped to provide investors with a growing stream of dividends in the coming years.
Here's what you need to know about them:
Bell Potter thinks that supermarket giant Coles could be an ASX dividend share to buy.
It like the company due to its attractive earnings growth profile, which is being driven by major cost savings. It said:
We see FY25e as a year of consolidation on a reported basis, however, we continue to see COL as providing an attractive earnings growth profile through to FY27e on an underlying basis driven by: (1) delivering $1Bn in cumulative savings by FY27e through Simplify & Save ($238m of which was delivered in FY24) (2) Sustained benefit of lower loss rates (+44bp margin tailwind YOY in 2H24); (3) Delivering targeted returns on a ~$1.45Bn capital investment program in ADC's and CFC's; and (4) Expansion of the store network at a pace consistent with population growth
In respect to dividends, the broker is forecasting fully franked dividends per share of 68 cents in FY 2025, 78 cents in FY 2026, and then 86 cents in FY 2027. Based on the current Coles share price of $18.59, this equates to dividend yields of 3.65%, 4.2%, and 4.6%, respectively.
Bell Potter has a buy rating and $20.50 price target on its shares.
This beaten down pizza chain operator's shares could be in the buy zone according to analysts at Goldman Sachs. This is due to its undemanding valuation and recent focus on franchisee profitability. It said:
We have a Buy rating on the stock, as we believe management's focus on franchisee profitability through closure of 80/20-30 locations in Japan/France will help to material improve the quality of the network and help franchisee profitability. With COGs inflation moderating and the company focusing on execution of quality stores, we expect that store growth will be restored following a digestion period. DMP is trading at an undemanding PE valuation relative to its LT average and as such we believe the stock now offers an attractive entry point.
As for income, the broker is forecasting dividends of $1.13 per share in FY 2025, $1.36 per share in FY 2026, and then $1.62 per share in FY 2027. Based on the current Domino's share price of $32.60, this equates to yields of 3.5%, 4.2%, and 5%, respectively.
Goldman has a buy rating and $39.10 price target on its shares.
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