Buy Westpac and this ASX dividend stock now: analysts

A banking giant and a footwear retailer have been given the thumbs up.

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There are plenty of ASX dividend stocks for investors to choose from on the Australian share market.

Two that come highly rated by analysts this month are listed below. Here's why they are tipping them as buys for income investors:

Accent Group Ltd (ASX: AX1)

The first ASX dividend stock for investors to consider buying is footwear-focused retailer Accent.

Bell Potter is positive on the company and has a buy rating and a $2.50 price target on its shares. It commented:

Our estimates see a ~9% EPS CAGR, FY23-26e and we view the AX1's valuation as attractive trading at a 12x BPe FY25e P/E relative to the ASX200 Consumer Discretionary sector which has traded on a 10-year median P/E of ~20x.

In respect to dividends, Bell Potter is forecasting fully franked dividends per share of 12 cents in FY 2024 and then 14.1 cents in FY 2025. Based on the latest Accent share price of $1.86, this represents dividend yields of 6.45% and 7.6%, respectively.

Westpac Banking Corp (ASX: WBC)

The team at Morgans thinks that this banking giant could be another ASX dividend stock to buy right now.

The broker currently has an add rating and a $22.58 price target on its shares. It commented:

If WBC can materially improve its business performance (this is not without significant risk of disappointment) then an investment in its stock could deliver attractive returns as the share price rerates upwards and cash returns to investors lift.

As for dividends, Morgans is forecasting fully franked dividends of $1.46 per share in FY 2023 and then $1.47 per share in FY 2024. Based on the current Westpac share price of $21.01, this will mean yields of 6.9% and 7%, respectively.

Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Accent 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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