3 excellent ASX dividend stocks to buy with $3,000

MotleyFool
02-06

If you have $3,000 to invest and you're looking for dividend income, then the ASX dividend stocks below could be worth considering.

These stocks have been rated as buys by analysts and are expected to offer solid dividend yields in the coming years. Let's take a closer look.

Cedar Woods Properties Limited (ASX: CWP)

The first ASX dividend stock that could be worth buying with your $3,000 according to analysts is Cedar Woods. It is one of Australia's leading property developers, with a diversified portfolio spanning geography, price points, and product types.

The team at Morgans rates the company highly. Its analysts believe Cedar Woods is well-positioned for double-digit profit growth this year. They note that "looking forward, the signs are positive, with guidance for +10% NPAT growth in FY25, supported by favorable operating conditions in most key states."

The broker expects this to support dividend payments of 27 cents per share in FY 2025 and then 33.3 cents per share in FY 2026. Based on its current share price of $5.32, this equates to yields of 5.1% and 6.3%, respectively.

Morgans has an add rating and $6.70 price target on Cedar Woods shares.

Endeavour Group Ltd (ASX: EDV)

Over at Goldman Sachs, its analysts believe that Endeavour Group is an ASX dividend stock to buy with your $3,000.

Endeavour is the leader in the Australian alcohol retail market through its well-known brands, Dan Murphy's and BWS. In addition, Endeavour owns ALH Hotels, which operates over 350 licensed venues across the country. It also boasts over 4.5 million members of its My Dan's loyalty program.

Goldman expects this to underpin fully franked dividends of 19 cents per share in FY 2025 and then 22 cents per share in FY 2026. Based on the current Endeavour share price of $4.11, this implies dividend yields of 4.6% and 5.35%, respectively.

It has a buy rating and $5.10 price target on Endeavour shares.

Universal Store Holdings Ltd (ASX: UNI)

Finally, Bell Potter thinks youth fashion retailer Universal Store could be a great ASX dividend stock to buy with your $3,000.

The broker believes Universal Store's shares offer good value given its positive growth outlook. It recently highlighted the company's strengths, stating that "the store roll-out & brand growth strategy, margin expansion via private label product penetration (currently ~46%), and strong earnings trajectory make Universal Store an attractive investment."

Bell Potter expects the company to pay fully franked dividends of 31.4 cents per share in FY 2025 and 36.8 cents per share in FY 2026. Based on the current Universal Store share price of $8.09, these translate to dividend yields of 3.9% and 4.5%, respectively.

The broker currently has a buy rating and $8.85 price target on Universal Store shares.

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