If you're searching for ASX dividend stocks to buy for passive income, then the two listed below could be worth looking at.
Both have been tipped as buys with meaningful upside potential and big forecast yields.
Here's what you need to know about them:
Rural Funds Group (ASX: RFF)
The first ASX dividend stock that has been named as a buy is Rural Funds.
It is a real estate investment trust (REIT) with a focus on agricultural properties. Its portfolio comprises assets including orchards, vineyards, water entitlements, cropping, and cattle farms.
Analysts at Bell Potter are positive on Rural Funds. In fact, they believe its shares could be cheap based on where they trade relative to its net asset value. The broker has previously commented that this discount to adjusted NAV reflects what would historically be considered "an attractive entry point for investors." It has a buy rating and $2.65 price target on Rural Funds shares.
As for dividends, the broker is expecting an 11.7 cents per share dividend in FY 2023 and then a 12.2 cents per share dividend in FY 2024. Based on the current Rural Funds share price of $1.97, this represents yields of 5.9% and 6.2%, respectively.
South32 Ltd (ASX: S32)
Another ASX dividend stock that could give your passive income a lift is diversified miner South32.
Goldman Sachs recently became positive on the company for a number of reasons. It explained:
We rate S32 a Buy based on: (1) Attractive valuation, (2) Improving FCF outlook on higher production & commodity prices (base metals and met coal), (3) Supportive share buyback and dividend yield, (4) Upside potential from base metal growth projects.
The broker is expecting the above to result in fully franked dividends of 12 US cents per share in FY 2023 and then 28 US cents per share in FY 2024. Based on the current South32 share price of $4.13 and the latest exchange rates, this will mean yields of 4.3% and 9.9%, respectively.
Goldman Sachs also sees decent upside for its shares with its buy rating and $4.80 price target.
