The good news for income investors is that there are a good number of quality ASX dividend stocks to choose from on the Australian share market.
But which could be buys next week? Well, two that analysts at Morgans rate highly are listed below. Here's what the broker likes about them:
QBE Insurance Group (ASX: QBE)
The first ASX dividend stock to consider buying according to Morgans is QBE. It currently has an add rating and $17.16 price target on the insurance giant's shares.
According to the note, the broker is a fan of QBE in the current environment due to premium rate increases. It also expects its cost reduction plans to support its earnings growth. It said:
With strong rate increases still flowing through QBE's insurance book, and further cost-out benefits to come, we expect QBE's earnings profile to improve strongly over the next few years. The stock also has a robust balance sheet and remains relatively inexpensive overall trading on 8x FY24F PE.
As for dividends, the broker has pencilled in dividends per share of 66 cents in FY 2023 and 93 cents in FY 2024. Based on the current QBE share price of $15.72, this will mean yields of 4.2% and 5.9%, respectively.
Universal Store Holdings Ltd (ASX: UNI)
Another ASX dividend stock that Morgans rates highly is Universal Store. It is the youth fashion retailer behind the eponymous Universal Store brand, as well as the Perfect Stranger, Thrills, and Worship brands. Morgans currently has an add rating and a $4.25 price target on its shares.
Its analysts believe the company's shares are cheap based on its positive growth outlook. It highlights that "UNI's attractive array of medium-term growth prospects is undervalued at a single digit FY25 P/E."
In respect to dividends, it is expecting 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 $3.37, this will mean yields of 7.7% and 8.6%, respectively.
