Are you wanting to add some ASX dividend stocks to your income portfolio? If you are, then the two listed below could be worth checking out.
Both have recently been named as top buys by analysts and tipped to provide good yields. Here's what you need to know about these dividend stocks:
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Aurizon Holdings Ltd (ASX: AZJ)
The first ASX dividend stock that experts have named as a buy is Aurizon.
It is Australia's largest rail freight operator, connecting miners, primary producers, and industry with international and domestic markets via its extensive national rail and road network.
The team at Morgans is positive on Aurizon and is expecting some attractive dividend yields from its shares. The broker also continues to "see value in the stock at current prices, supported by the far higher quality Network and Coal haulage businesses."
In respect to dividends, the broker has pencilled in partially franked dividends of 17 cents per share in FY 2023 and then 19 cents per share in FY 2024. Based on the latest Aurizon share price of $3.52, this will mean yields of 4.8% and 5.4%, respectively.
Morgans currently has an add rating and $3.81 price target on its shares.
Coles Group Ltd (ASX: COL)
Another ASX dividend stock that has been named as a buy is supermarket giant Coles.
Citi is bullish on the company and recently reiterated its buy rating following a tour of Coles' new Automated Distribution Centre (ADC) located in Redbank, Queensland.
This major project is expected to be fully operational by the end of 2023 and reinforces Citi's "view that Coles is moving in the right direction and the ADCs have the potential to provide a cost advantage over competitors."
It is partly for this reason that the broker is forecasting fully franked dividends per share of 69 cents in FY 2023, 73 cents in FY 2024, and then 80 cents in FY 2025. Based on the current Coles share price of $18.11, this represents yields of 3.8%, 4% and 4.4%, respectively.
Citi has a buy rating and $20.20 price target on its shares.
