Thanks to the significant number of ASX dividend stocks available to investors on the Australian share market, it is a great place to generate a passive income.
But which dividend stocks could be good options right now? Let's take a look at three.
Passive income options
The first option for investors to consider buying is Universal Store Holdings Ltd (ASX: UNI). It is a youth fashion retailer with a growing network of stores across Australia. This includes its eponymous Universal Store brand, as well as the Perfect Stranger and Thrills brands.
Bell Potter sees it as a great option for investors and has a buy rating and a $4.80 price target on its shares.
It notes that "UNI is building core brands while growing its store rollout backed by a strong management team. The higher margin sales from the majority private label sales will become a major driver of margin improvement and earnings growth, in an expanded store footprint."
What about passive income? Well, Bell Potter is expecting some very large and growing dividend yields over the coming years.
It is forecasting fully franked dividends per share of 20.8 cents in FY 2024, 26.3 cents in FY 2025, and 29.8 cents in FY 2026. This will mean yields of 5.9%, 7.5%, and 8.5%, respectively.
Another option for income investors to consider is ANZ Group Holdings Ltd (ASX: ANZ).
Goldman Sachs sees the banking giant as an ASX dividend stock to snap up right now. It has a buy rating and a $26.66 price target on its shares. And with Goldman forecasting dividends per share of $1.62 from FY 2024 to FY 2026, it would mean 6.7% dividend yields each year.
A third option for passive income seekers is QBE Insurance Group Ltd (ASX: QBE). The insurance giant has also been named as a buy by analysts at Goldman Sachs. They have a buy rating and an $18.34 price target on its shares.
And, like the others, the broker is forecasting some very attractive yields from its shares. It expects dividends per share of 42 US cents in FY 2023, 60 US cents in FY 2024, and 62 US cents in FY 2025. This equates to 4.1%, 5.8%, and 6.1% dividend yields at current prices and exchange rates.