There are plenty of ASX income stocks for investors to choose from. But, which ones should you buy?
Two that are down heavily this year and have recently been tipped as buys and forecast to offer attractive dividend yields are listed below. Here's why brokers are bullish on them:
Rural Funds Group (ASX: RFF)
The first ASX income stock to look at is Rural Funds. This property company owns a portfolio of high-quality assets across a number of agricultural industries. This includes cropping, orchards, vineyards, water entitlements, and cattle farms.
Bell Potter is a fan of the company and believes its shares are great value after falling 29% year to date. Its analysts highlight that its "discount to market NAV is implying a downward correction in property values comparable to that seen in US agricultural land values in 1932-33 and 1985-87." Something that is unlikely to happen.
In respect to dividends, the broker is forecasting an 11.7 cents per share dividend in FY 2023 and FY 2024. Based on the current Rural Funds share price of $1.71, this represents yields of 6.8% in both years.
Bell Potter has a $2.20 price target on its shares.
Universal Store Holdings Ltd (ASX: UNI)
This youth fashion retailer could be an ASX income stock to buy. Its shares have come under pressure this year after the cost of living crisis put pressure on sales.
Goldman Sachs feels that this has created a buying opportunity for investors. This is due to its very attractive valuation, positive medium-term outlook, and big dividend yield.
As for dividends, the broker is forecasting fully franked dividends per share of 20 cents in FY 2023 and then 24 cents in FY 2024. Based on the current Universal Store of $2.52, this will mean yields of 7.9% and 9.5%, respectively.
Goldman has a buy rating and a $5.05 price target on its shares.
