Buy these ASX dividend stocks for great yields in 2024

Analysts are expecting great yields from these dividend shares in the coming years.

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Wanting some ASX dividend stocks to buy for your income portfolio? Then you may want to check out the two listed below.

Both have been named as buys by analysts and are tipped to offer big yields. Here's what you need to know about them:

Super Retail Group Ltd (ASX: SUL)

The first ASX dividend stock that has tipped as a buy is Super Retail. It is the diversified retailer responsible for a number of popular brands including Rebel and Super Cheap Auto.

Morgans was pleased with Super Retail's performance in FY 2023 and expects more of the same in the new financial year. In fact, it believes the company will be well-placed to pay another special dividend. It said:

SUL reported positive growth in sales and earnings in FY23, despite cycling elevated comps. Better than expected margins meant NPAT was 9% higher than our estimates. SUL declared a 25c special dividend, and at this stage we think it will declare another one this time next year.

Morgans has a buy rating and a $15 price target on its shares.

In respect to dividends, the broker is forecasting fully franked dividends per share of 89 cents in FY 2024 and then 73 cents in FY 2025. Based on the latest Super Retail share price of $12.05, this will mean generous yields of 7.4% and 6.1%, respectively.

Telstra Group Ltd (ASX: TLS)

A second 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. It likes the company's "low risk earnings (and dividend) growth" and sees an opportunity for Telstra to monetise its NBN business. It explains:

Although there is some debate around the strategic benefits, we see a strong rationale for monetizing the recurring NBN payment stream, given its inflation linked, long duration cash flows could be worth $14.5bn to $17.9bn, with no loss strategic benefit.

In respect to dividends, Goldman is expected 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 $3.87, this equates to fully franked yields of 4.65% and 5.15%, respectively.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Super Retail Group. The Motley Fool Australia has positions in and has recommended Super Retail Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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