Are you in the market for some ASX dividend stocks this month? If you are, check out the two listed below that are from very different sides of the market.
Here's why analysts are tipping these as buys for income investors:
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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.
Morgans is positive on this health and wellness-focused real estate investment trust. Last week, it said:
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). Asset recycling has been a focus with further asset sales targeted in FY24. HCW is also a potential candidate to enter the ASX300 index in the Sep-23 re-balance.
In respect to dividends, it is 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 $1.50, this will mean yields of 5.3%.
Morgans has an add rating and a $1.67 price target on its shares.
Lottery Corporation Ltd (ASX: TLC)
Citi thinks that Lottery Corporation could be another ASX dividend stock to buy. It is the lottery company behind OZ Lotto, Powerball, and Keno.
The broker likes the company due to its defensive earnings. In addition, it feels that recent price increases and higher commission rates could have a major impact on margins. It explains:
The Lottery Corporation (TLC) lottery earnings can be volatile depending on jackpots but are defensive over time with no correlation to the business cycle. We expect last year's Oz Lotto changes to result in a material revenue lift as the jackpot sequence normalises. We believe the market underestimates the uplift to the contribution margin following the increase in the commission rate and cut to third party digital commissions.
As for dividends, the broker is forecasting 18 cents per share dividends in FY 2024 and FY 2025. This will mean fully franked yields of 3.5%.
Citi has a buy rating and a $5.70 price target on its shares.
