There are plenty of options for income investors on the Australian share market. In order to narrow things down, I have picked out a couple of ASX dividend stocks that analysts rate as buys.
Here's what you need to know about them:
ANZ Group Holdings Ltd (ASX: ANZ)
The first ASX dividend stock that has been named as a buy is banking giant ANZ.
Citi believes it is the bank to buy in the current environment. This is because it sees its "unique capabilities as set to deliver relative outperformance in the current market conditions."
The broker is also expecting ANZ shares to provide investors with some big dividend yields in the near term. It is forecasting fully franked dividends of 164 cents per share in FY 2023 and then 166 cents per share in FY 2024. Based on the current ANZ share price of $22.74, this will mean yields of 7.2% and 7.3%, respectively.
Citi has a buy rating and $26.50 price target on its shares.
APM Human Services International Ltd (ASX: APM)
Another ASX dividend stock that could be a buy is APM Human Services. It is an international health and human services provider.
Goldman Sachs feels the company is a bit of a hidden gem. It believes the market is "under appreciating APM's ability to generate sustainable earnings growth (GSe 14% EPS CAGR, FY22-25E)."
This is expected to be driven partly by the ramp up of the new Workforce Australia contract, gain in scale in the significant NDIS/Allied Health opportunity, and recent successful contract wins outside Australia.
As for dividends, Goldman is forecasting dividends per share of 10 cents in FY 2023 and 11 cents in FY 2024. Based on the current APM share price of $2.06, this equates to yields of 4.85% and 5.3%, respectively.
Goldman also sees plenty of upside potential with its buy rating and $3.75 price target.
