Are these ASX dividend stocks buys?

What sort of yields are analysts expecting from these shares?

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

There are a lot 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 good things about are listed below. Here's why they could be in the buy zone:

Middle age caucasian man smiling confident drinking coffee at home.

Image source: Getty Images

QBE Insurance Group Ltd (ASX: QBE)

The first ASX dividend stock that analysts are positive on is insurance giant QBE. Goldman Sachs is tipping the company's shares as a buy with an $18.09 price target.

The broker likes QBE because it believes that rates "earned over the next 12 months will likely be well ahead of moderating inflation to offset reinsurance / perils cost pressure and likely support improving underlying trends."

In respect to dividends, the broker expects the above to underpin payouts of 42 US cents per share in FY 2023 and 60 US cents per share in FY 2024. Based on the current QBE share price of $15.02, this will mean yields of 4.3% and 6.2%, respectively.

Tourism Holdings Ltd (ASX: THL)

Another ASX dividend stock that has been given a buy rating by analysts is Tourism Holdings. Morgans currently has an add rating and a $5.02 price target on the shares of the world's largest commercial recreational vehicle rental operator.

The broker believes its shares are too cheap based on its earnings estimates. It highlights that "THL is trading on a recovery year (FY25) PE of only 9.3x, which is attractively priced for a global, market leader."

Morgans is also forecasting some attractive dividend yields in the near term. It expects 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 $3.20, this would mean yields of 4.7% and 5.5%, respectively.

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.

More on Dividend Investing

A cool young man walking in a laneway holding a takeaway coffee in one hand and his phone in the other reacts with surprise as he reads the latest news on his mobile phone
Dividend Investing

8% yield: The ASX is getting a new dividend stock that pays out monthly

This soon-to-be stock has averaged an 8% yield since 2016...

Read more »

Happy young couple saving money in piggy bank.
Dividend Investing

How many BHP shares do I need to $1,000 of passive income?

Let's run the numbers and find out what is needed.

Read more »

Man holding Australian dollar notes, symbolising dividends.
Dividend Investing

Where to invest $2,000 in ASX dividend shares

Morgans thinks these shares are buys with attractive forecast dividend yields.

Read more »

a woman puts a pen to her mouth as she smiles slightly while checking an old book style diary/calendar.
Dividend Investing

20 ASX shares with ex-dividend dates next week

To be eligible to receive a dividend, you must own the ASX share before the ex-dividend date.

Read more »

View of a business man's hand passing a $100 note to another with a bank in the background.
Dividend Investing

Everything you need to know about the latest Soul Patts dividend

Here’s how big the latest dividend is from the investment house…

Read more »

Australian dollar notes in the pocket of a man's jeans, symbolising dividends.
Dividend Investing

Fund manager names 3 top ASX 200 dividend stocks to buy today

A leading fund manager expects these quality ASX dividend stocks will boost their payouts.

Read more »

Man holding out Australian dollar notes, symbolising dividends.
Dividend Investing

Why ASX dividend shares could still be better than term deposits

Let's see what dividend shares offer compared to term deposits.

Read more »

A man surrounded by huge piles of paper looks through a magnifying glass at his computer screen.
Dividend Investing

As the ASX indexes sink, these unique dividend shares are making investors money

The share price of these two dividend stocks has jumped higher over the past month.

Read more »