If you're an income investor looking for ASX dividend stocks to buy, then you may want to check out the two listed below.
Both have been named as buys following the release of their results this month. Here's what you need to know:
Healthco Healthcare and Wellness REIT (ASX: HCW)
The first ASX dividend stock that has been named as a buy is Healthco Healthcare and Wellness REIT. It is a health and wellness-focused real estate investment trust.
Morgans is positive on the company and has an add rating and a $1.67 price target on its shares. This morning, it commented:
HCW's result was in line with guidance with the integration of the Healthscope portfolio transaction dominating the year. The near term focus is on third party fund raising for UHF as well as asset sales. The unlisted fund is on track to reach first close in Sep-23 and is integral to unlocking HCW's $1bn development pipeline over the medium-long term. Portfolio metrics remain stable (cash collection 100%; occupancy 99%; and WALE 12 years).
As for dividends, the broker is now forecasting dividends per share of 8 cents in FY 2024 and FY 2025. Based on the current Healthco Healthcare and Wellness REIT unit price of $1.48, this will mean yields of 5.4%.
Transurban Group (ASX: TCL)
Another ASX dividend stock that could be a buy is Transurban.
It is a toll road operator with a total of 22 roads across Australia and North America.
Citi is feeling bullish on the company and has a buy rating and a $15.90 price target on its shares. In response to the release of its recent results, the broker said:
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 TCL is currently trading in-line with historic EV/EBITDA multiples at 22.5x, but we see upside given the strong EBITDA growth outlook (c.12% CAGR between Fy24-FY26). Retain Buy.
Citi 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 $13.08, this will mean yields of 4.85% and 5%, respectively.
