Are you looking for income options? If you are, you may want to check out the ASX dividend stocks listed below that brokers are rating as buys.
Here's what you need to know about them:
Aurizon Holdings Ltd (ASX: AZJ)
The first ASX dividend stock that has been named as a buy is Aurizon. It is a rail freight operator that transports more than 250 million tonnes of Australian commodities each year.
Macquarie is positive on Aurizon. It currently has an outperform rating and a $4.04 price target on its shares.
In respect to dividends, the broker is forecasting partially franked dividends of 18.4 cents per share in FY 2024 and then 25.1 cents per share in FY 2025. Based on the latest Aurizon share price of $3.58, this will mean dividend yields of 5.1% and 7%, respectively.
Coles Group Ltd (ASX: COL)
Another ASX dividend stock that has been named as a buy recently is supermarket giant Coles.
Analysts at Citi are bullish on the company. They currently have a buy rating and a $18.30 price target on its shares. The broker was happy with Coles' sales performance in FY 2023 and believes it "reinforces our view that the market looks too low on sales in FY24."
As for dividends, Morgans is expecting a fully franked 61 cents per share dividend in FY 2024 and 68 cents per share in FY 2025. Based on the current Coles share price of $15.85, this will mean dividend yields of 3.85% and 4.3%, respectively.
Telstra Group Ltd (ASX: TLS)
A final ASX dividend stock that could be a buy is Telstra. It is of course Australia's largest telecommunication company.
The team at Goldman Sachs is positive on Telstra and has a buy rating and a $4.80 price target on its shares. The broker "believe[s] the low risk earnings (and dividend) growth that Telstra is delivering across FY22-25, underpinned through its mobile business, is attractive."
In respect to dividends, Goldman is expecting the telco giant to pay fully franked dividends of 18 cents per share in FY 2024 and then 20 cents per share in FY 2025. Based on the current Telstra share price of $3.95, this equates to fully franked yields of 4.55% and 5%, respectively.
