The Australian share market traditionally provides investors with an average dividend yield of approximately 4%.
However, income investors don't have to settle for that.
That's because there are plenty of ASX dividend stocks that offer investors above-average yields. But which ones could be buys? Let's find out.
Centuria Industrial REIT (ASX: CIP)
Centuria Industrial could be an ASX dividend stock to buy.
It is the largest domestic pure-play industrial REIT. Management notes that its portfolio is well positioned with a 91% weighting to Australia's high-performing eastern seaboard industrial markets and underpinned by a strong tenant base with approximately 62% of portfolio income derived from tenant customers directly linked to the production, packaging and distribution of consumer staples, pharmaceuticals, and telecommunications.
Macquarie is a fan of the company and has an outperform rating and a $3.41 price target on its shares.
As for income, the broker is expecting dividends per share of 16 cents in both FY 2024 and 16.5 cents in FY 2025. Based on the current Centuria Industrial share price of $3.13, this represents yields of 5.1% and 5.3%, respectively.
Universal Store Holdings Ltd (ASX: UNI)
Another ASX dividend stock that has the potential to offer above-average dividend yields is Universal Store.
It is the youth fashion retailer behind the eponymous Universal Store brand, as well as the Thrills and Worship brands. It is also currently trialling the Perfect Stranger brand as a standalone retail concept. At present, the company operates 98 physical stores across Australia (and growing) and three online stores.
Morgans is very positive on its outlook due to its "attractive array of medium-term growth prospects." It currently has an add rating and a $4.25 price target on its shares.
In respect to dividends, Morgans has pencilled in fully franked dividends of 26 cents in FY 2024 and then 29 cents in FY 2025. Based on the latest Universal Store share price of $3.60, this equates to yields of 7.2% and 8%, respectively.