The good news for income investors is that there are a lot of dividend stocks to choose from on the ASX.
If you're paralysed by choice, don't worry! That's because listed below are a couple of ASX dividend shares that are highly recommended by analysts. Here's why they are tipping them as buys:
Dicker Data Ltd (ASX: DDR)
The first ASX dividend stock that has been named as a buy is Dicker Data.
It is one of the largest distributors of computer hardware and software in the ANZ region.
The team at Morgan Stanley is expecting Dicker Data to continue growing its dividend in the coming years.
It is forecasting fully franked dividends per share of 43.9 cents in FY 2023 and 48.9 cents in FY 2024. Based on the latest Dicker Data share price of $10.46, this will mean yields of 4.2% and 4.7%, respectively.
Morgan Stanley has an outperform rating and $11.00 price target.
Whitehaven Coal Ltd (ASX: WHC)
Another ASX dividend stock that has been named as buy is Whitehaven Coal.
It is one of the region's largest coal miners. But management isn't settling for that and is reportedly interested in buying the coal assets of BHP Group Ltd (ASX: BHP).
Speaking of which, Morgans is positive on the company and believes it "is the front-runner for the BHP asset if it chooses."
In the meantime, the broker is expecting the company to pay a 26 cents per share dividend in FY 2024 and then 22 cents per share in FY 2025. Based on the current Whitehaven Coal share price of $6.68, this implies yields of 3.9% and 3.3%, respectively.
Morgans has an add rating and $8.55 price target on its shares.
