If you're an income investor, then you might want to read on. That's because listed below are two ASX dividend stocks that have been rated as buys by experts.
Here's what they are saying about these top ASX dividend stocks:
QBE Insurance Group Ltd (ASX: QBE)
The first ASX dividend stock that has been named as a buy is insurance giant QBE.
Analysts at Citi are positive on the company. This is due to its top-line growth and the supportive premium rate environment. The broker explains:
QBE's 3Q23 update is largely as we expected and previewed in our 6 November note and it reiterates it is on track for its FY23 group COR guidance of ~94.5%. With a benign US hurricane season, there remains ~US$380m in its CAT allowance for the last two months of the year suggesting a favourable variance is likely. […] Top line guidance for 10% GWP growth (constant fx) is also retained while, quite reasonably, QBE suggests the supportive premium rate environment should continue into FY24. With all largely in line with expectations, we retain Buy.
In respect to dividends, Citi expects QBE to pay dividends per share of 60 cents in FY 2023 and then 80 cents in FY 2024. Based on the latest QBE share price of $14.66, this equates to yields of 4.1% and 5.45%, respectively.
Citi has a buy rating and an $18 price target on its shares.
Stockland Corporation Ltd (ASX: SGP)
Another ASX dividend stock that Citi has rated as a buy is Stockland.
It is a residential and land lease developer and retail, logistics and office real estate property manager. Citi's analysts recently commented:
SGP has been our preferred exposure among the residential landlords given our view of a better-than-market expected residential cycle and strong growth in the non-residential portions of the business. With the 1Q24 update today, SGP confirmed 34.5-35.5% pre-tax FFO guidance. Residential sales recovered from 4Q23, with 12 months rolling net deposits now bouncing off the trough levels. Moreover, logistics rental spreads have sharply accelerated to >35% in 1Q24, highlighting further rental upside on the short WALE logistics portfolio. Land lease sales increased QoQ and with pricing improvement supporting the strong medium-term growth outlook.
As for income, the broker is forecasting dividends per share of 27 cents in both FY 2024 and FY 2025. Based on the current Stockland share price of $4.40, this will mean yields of 6.1%.
Citi has a buy rating and a $5 price target on its shares.
