If you want the winning combination of big potential gains and juicy dividend yields, then check out the ASX shares listed below.
Both of these shares have been tipped as buys and are forecast to provide investors with significantly bigger-than-average yields in the near term. Here's what you need to know:
MotorCycle Holdings Ltd (ASX: MTO)
Analysts at Morgans think that this leading motorcycle dealership and accessories company's shares are cheap at current levels.
The broker highlights that the company's share price "continues to screen too cheap on ~6.5x FY24F PE."
As a result, Morgans has put an add rating and a $2.60 price target on its shares. This implies a potential upside of over 24% for investors from current levels.
Another positive is that the broker is expecting the company to pay fully franked dividends per share of 20 cents in both FY 2024 and FY 2025. Based on the current MotorCycle Holdings share price of $2.09, this implies yields of 9.5%.
Universal Store Holdings Ltd (ASX: UNI)
Another ASX share that could be cheap right now is youth fashion retailer Universal Store.
Morgans is also positive on Universal Store and highlights that its "attractive array of medium-term growth prospects is undervalued at a single digit FY25 P/E."
The broker has an add rating and a $4.25 price target on its shares, which implies a potential upside of more than 35% over the next 12 months.
Morgans is also forecasting some very big dividend yields in the near term. It expects the retailer to pay fully franked dividends per share of 26 cents in FY 2024 and 29 cents in FY 2025. Based on the current Universal Store of $3.10, this will mean yields of 8.4% and 9.35%, respectively.
