2 buy-rated ASX dividend stocks with big yields

Brokers are saying good things about these dividend shares right now.

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There are plenty of ASX dividend stocks to choose from on the local share market.

But which ones could be good options for income investors right now? Well, two that analysts are saying positive things about are listed below. Here's why they could be dividend stocks to buy:

Suncorp Group Ltd (ASX: SUN)

The first ASX dividend stock that could be a buy this week according to analysts is Suncorp.

It is one of Australia's leading insurance companies with a portfolio of brands. These include AAMI, Apia, Bingle, Suncorp, and Vero. In addition, the company has banking operations that are in the process of being divested.

Goldman Sachs is a fan of the company. It commented:

We are favourably disposed to Suncorp, noting in large part the tailwinds that exist in the general insurance market – i.e., very strong renewal premium rate increases and the benefit of higher investment yields. We think the strong rate momentum that SUN is getting should likely offset volume pressures as they optimise their risk exposures in certain portfolios such as home but also likely policy lapses / buy downs.

As for dividends, the broker is forecasting fully franked dividends per share of 76 cents in FY 2024 and 81 cents in FY 2025. Based on the current Suncorp share price of $13.53, this will mean yields of 5.6% and 6%, respectively.

Goldman Sachs has a buy rating and a $15.13 price target on its shares.

Tourism Holdings Ltd (ASX: THL)

Another ASX dividend stock that has been given the thumbs up is Tourism Holdings.

Thanks to some recent acquisitions, it is now the largest commercial recreational vehicle rental operator in the world.

Morgans is a fan of the company and believes its shares are too cheap based on its earnings estimates. It said:

THL had a strong FY23 result which beat our forecast (pre-acquisition accounting). The business continues to recover nicely from the COVID induced tourism downturn and benefit from historically high rental yields and merger synergies. While it is too early to provide FY24 earnings guidance, overall, its trading update and outlook comments were generally positive. THL is trading on a recovery year (FY25) PE of only 9.3x, which is attractively priced for a global, market leader. We maintain an Add rating.

Morgans is also expecting some attractive dividend yields. It has pencilled in dividends per share of 15 cents in FY 2024 and 17.6 cents in FY 2025. Based on the current Tourism Holdings share price of $3.33, this would mean yields of 4.5% and 5.3%, respectively.

The broker has an add rating and a $5.02 price target on its shares.

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. The Motley Fool Australia has no position in any of the stocks mentioned. 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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