Income investors have a lot of choice on the Australian share market. So much, it can be hard to decide which ASX dividend stocks to buy over others.
To narrow things down, let's look at a few buy-rated dividend stocks that are being tipped to provide investors with good dividend yields in the near term.
Here's what analysts are saying about these stocks this month:
The first ASX dividend stock that analysts are bullish on is Dexus Convenience Retail REIT.
It is a property company that owns a portfolio of service station and convenience retail assets located across the country. These properties are in high demand, with management highlighting that its 100 properties are leased to high-quality tenants on attractive, long-term leases (WALE of 8.8 years).
In addition, management notes that it has a significant growth opportunity through contracted annual rent increases in all leases and a targeted acquisition strategy.
The team at Morgans is positive on the company and expects some big dividends in the near future.
The broker has pencilled in dividends per share of 20.6 cents in FY 2025 and then 21.5 cents per share in FY 2026. Based on its current share price of $2.88, this implies a dividend yield of 7.15% and 7.5%, respectively.
Morgans has an add rating and $3.25 price target on its shares.
Another ASX dividend stock for income investors to consider buying is National Storage.
It is the largest self-storage provider in Australia and New Zealand, with over 250 centres providing tailored storage solutions to over 97,000 residential and commercial customers.
Citi is positive on the company. It believes National Storage is well-placed for growth thanks to a combination of higher underlying rates and acquisitions.
The broker expects this to underpin dividends per share of 11.3 cents in FY 2025 and 11.9 cents in FY 2026. Based on the current National Storage share price of $2.36, this equates to yields of 4.8% and 5%, respectively.
Citi has a buy rating and $2.70 price target on the company's shares.
A third ASX dividend stock that could be a buy for income investors is Smartgroup.
It is a simplified employee management services provider offering salary packaging, fleet management, and a range of other services to organisations across Australia.
Bell Potter is bullish on the company. It highlights that "SIQ looks well priced given a fwd P/E of ~14.5x, a defensive client base, earnings tailwinds from the Electric Car Discount Bill (exempts low or zero emission vehicles from Fringe Benefits Tax), an ROE of ~30% and a strong balance sheet."
In respect to income, the broker is forecasting fully franked dividends of 53.3 cents in FY 2024 and then 59.7 cents in FY 2025. Based on its current share price of $7.67, this means big potential dividend yields of 6.9% and 7.8%, respectively.
Bell Potter currently has a buy rating and $10.00 price target on its shares.
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