If you're looking for passive income, then it could be worth checking out the two ASX dividend stocks listed below that Goldman Sachs is bullish on.
Here's what you need to know about these income options:
APM Human Services International Ltd (ASX: APM)
The first ASX dividend stock that Goldman Sachs rates as a buy is APM Human Services. It is an international health and human services provider.
Goldman believes its shares are undervalued at the current level. Particularly given "APM's ability to generate sustainable earnings growth (GSe 14% EPS CAGR, FY22-25E)."
The broker is expecting this to underpin dividends per share of 10 cents in FY 2023 and 11 cents in FY 2024. Based on the current APM share price of $2.21, this equates to yields of 4.5% and 5%, respectively.
Goldman has a buy rating and a $3.75 price target, which implies a significant upside from current levels.
Endeavour Group Ltd (ASX: EDV)
Goldman Sachs also believes that this drinks company could be an ASX dividend stock for income investors to buy.
It feels the company's shares are great value considering its industry-leading position and positive outlook.
Goldman points out that its shares are currently trading under "~20x P/E implying 2.4x PEG which remains attractive relative to the rest of our Consumer coverage." Especially considering that its "forecasts imply 4.4% sales CAGR and 8.3% EPS CAGR FY22-25e."
Its analysts are expecting this to support fully franked dividends of approximately 22 cents per share in FY 2023 and 24 cents per share in FY 2024. Based on the current Endeavour share price of $6.06, this equates to yields of 3.6% and 4%, respectively.
Goldman has a buy rating and a $7.50 price target on the company's shares, which implies a potential upside of almost 24%.
