If you have room in your income portfolio for some new additions, then it could be worth checking out the ASX dividend shares listed below.
Here's why analysts think they are in the buy zone right now:
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GDI Property Group Ltd (ASX: GDI)
Bell Potter believes that investors should be buying this property company's shares. The broker currently has a buy rating and 75 cents price target on them.
It believes the company's shares are cheap based on its positive earnings growth outlook. It explains:
Despite its sector low valuation metrics, GDI offers a +10% 3yr EPS CAGR which is amongst the highest amongst our coverage while many other passive REITs are still facing CoD headwinds and declining earnings growth. With 17.5% portfolio vacancy the P&L rental risk is already on foot with limited near-term expiries which suggests en masse that there could be more earnings upside than downside risk.
Bell Potter is expecting the company to pay dividends per share of 5 cents in both FY 2024 and FY 2025. Based on the current GDI Property share price of 65.5 cents, this implies yields of 7.5% in both years.
Endeavour Group Ltd (ASX: EDV)
Over at Goldman Sachs, its analysts believe that drinks giant Endeavour is another ASX dividend share to buy. It has a buy rating and a $6.40 price target on its shares.
The broker likes the BWS and Dan Murphy's owner due to its strong market position and attractive valuation. It explains:
Our Buy thesis on the stock is based on the following key drivers: 1) Market share gain (already 40% market share) in defensive alcohol retail from consumer data and loyalty advantages; 2) Organic reopening beneficiary with its hotels/pubs business back to pre-COVID sales/property. We believe EDV is trading at a relatively attractive valuation, with potential downside from EGM tax changes already fully priced in.
As for dividends, Goldman is forecasting fully franked dividends of approximately 21 cents per share in FY 2024 and 23 cents per share in FY 2025. Based on the current Endeavour share price of $5.50, this equates to yields of 3.8% and 4.2%, respectively.
