A number of popular ASX dividend shares have released their results this week. Two that have gone down well with brokers are listed below.
Here's why they rate them as post-results buys for income investors:
Super Retail Group Ltd (ASX: SUL)
The first ASX dividend share that could be a buy is Super Retail. It is the retail group behind popular brands such as Macpac, Rebel, and Super Cheap Auto.
Analysts at Goldman Sachs are positive on the retailer and have responded to its full-year results by putting a buy rating and $14.40 price target on its shares. The broker commented:
We believe SUL will display resilience in a softer economic environment that is built upon its competitive advantage of high loyalty (~10m active members accounting for >70% of sales) and this will be further bolstered as the company launches the Rebel loyalty program and continues to build personalisation capabilities. Hence, we are Buy-rated on SUL. SUL is trading below its long run PE valuation average.
As for dividends, Goldman is expecting fully franked dividends per share of 62 cents in FY 2024 and then 64 cents in FY 2025. Based on the current Super Retail share price of $13.72, this will mean yields of 4.5% and 4.65%, respectively.
Transurban Group (ASX: TCL)
Another ASX dividend share that has been named as a buy is toll road operator Transurban.
In response to its FY 2023 results, analysts at Citi have retained their buy rating with a $15.90 price target. The broker commented:
We estimate that average toll across TCL's Australian toll roads increased c. 6% in FY23 with a further 6% increase likely in FY24, given delayed CPI impact on certain roads. We believe TCL's FY24 DPS guidance of 62c is conservative and we forecast DPS of 63.4c given strong toll price growth, traffic growth on new road completions and a slower increase in debt costs in FY24 given a small proportion (c. 3%) of the debt book is maturing this year.
The broker is forecasting dividends per share of 63.4 cents in FY 2024 and then 65 cents in FY 2025. Based on the current Transurban share price of $13.18, this will mean yields of 4.8% and 4.9%, respectively.
