Investors looking for reliable income options on the Australian share market may want to consider three dividend shares that analysts have identified as strong contenders for September 2023. These companies not only show resilience in a competitive landscape but also offer attractive dividend yields.
Coles Group Ltd: A Defensive Choice
Coles Group Ltd (ASX: COL), one of Australia’s leading supermarket chains, is often viewed as a defensive stock, making it appealing to income-focused investors. The company’s stable earnings stem from the essential nature of its business; consumers will always need groceries, regardless of economic conditions. This consistency allows Coles to maintain its dividend payments, even during challenging times, as evidenced during the pandemic.
Despite tight margins in the retail sector, Coles has prioritized efficiency and automation within its supply chain. These measures help to protect profitability and support steady, fully franked dividends for shareholders. According to Macquarie, Coles is rated as an outperformer with a price target of $25.40 per share. The brokerage forecasts fully franked dividends of 77 cents per share for FY 2026 and 84 cents per share for FY 2027. At its current share price of $23.96, this translates to dividend yields of 3.2% and 3.5%, respectively.
Accent Group Ltd: Resilience in Retail
Another noteworthy option is Accent Group Ltd (ASX: AX1), which has established itself as a strong dividend payer in the retail sector. The company owns popular footwear brands such as Platypus and Hype DC and holds exclusive distribution rights for several major global brands. Its capital-light model allows Accent to return a significant portion of its earnings to shareholders through fully franked dividends.
Accent has demonstrated resilience by quickly adapting to changing consumer trends and effectively balancing online and in-store sales. This adaptability positions it well for investors willing to navigate some volatility in the retail sector. Bell Potter has given Accent a buy rating with a price target of $1.80 per share. The firm anticipates fully franked dividends of 7.8 cents per share in FY 2026 and 9.2 cents for FY 2027. With its current share price at $1.36, this results in dividend yields of 5.7% and 6.75%, respectively.
Treasury Wine Estates Ltd: A Global Player
Finally, Treasury Wine Estates Ltd (ASX: TWE) stands out as a potential investment this month. As one of the world’s largest wine producers, Treasury boasts a portfolio of premium brands, including Penfolds and Wolf Blass. Its international presence, especially in Asia and the U.S., positions the company to benefit from increasing demand for luxury wines.
Though Treasury has faced challenges in recent years, it has shifted its focus towards premiumization, enhancing margins and strengthening cash flows. Analysts are optimistic about its future dividend potential. Morgans maintains a buy rating on Treasury with a price target of $10.10 per share. They project partially franked dividends of 41 cents per share in FY 2026 and 46 cents in FY 2027. Based on its current share price of $7.79, this would yield 5.25% and 5.9%, respectively.
In conclusion, these three ASX dividend shares—Coles Group, Accent Group, and Treasury Wine Estates—offer a blend of stability and growth potential for investors seeking income. As always, individual investment decisions should consider personal financial situations and investment goals.
