If you're both an income investor and a fan of buy and hold investing, then it could be worth considering the two ASX dividend shares listed below.
Here's why they could be top long-term options for investors:
Lovisa Holdings Ltd (ASX: LOV)
The first ASX dividend share to look at is Lovisa. It is one of Australia's leading specialist fast fashion jewellery retailers with over 800 stores across over 30 countries.
It could be a good option due to its bold global expansion plans, which are being overseen by a highly experienced CEO who has been there and done it before.
While 800 stores may sound like a lot, 168 of these were in Australia in FY 2023. This is only a touch less than it has in the United States market, which has a materially larger population. It has also just entered the China market. Clearly, there's still plenty of growth ahead for this retailer.
It is because of this expansion potential that Morgans is feeling very bullish about Lovisa. It currently has an add rating and a $27.50 price target on its shares.
As for dividends, the broker is forecasting fully franked dividends of 70 cents per share in FY 2024 and 81 cents per share in FY 2025. This implies yields of 3% and 3.5%, respectively.
Premier Investments Limited (ASX: PMV)
Another ASX dividend share that could be a top buy and hold option is Premier Investments. It is the retail giant that owns brands such as Just Jeans, Peter Alexander, and Smiggle.
Like Lovisa, it could be a good long-term option due to its expansion potential. The Smiggle brand is already expanding overseas, and the Peter Alexander brand is going to be next. And while there is plenty of competition in sleepwear globally, management's track record of success bodes well for the future.
Morgan Stanley is a fan of Premier Investments and has an overweight rating and a $32 price target on its shares.
It also expects attractive and growing dividend yields from its shares in the coming years. The broker is forecasting fully franked dividends per share of $1.01 in FY 2024 and then $1.06 in FY 2025. Based on the latest Premier Investments share price of $27.50, this equates to yields of 3.7% and 3.85%, respectively.
