If you're an income investor and have a penchant for buy and hold investing, then it could be worth considering the two ASX dividend stocks listed below.
Here's why they could be top long term options for investors:
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Lottery Corporation Ltd (ASX: TLC)
Lottery Corporation could be a great ASX dividend stock to buy and hold. It is the lottery company responsible for the OZ Lotto, Powerball, and Keno brands.
The team at Citi is positive on Lottery Corporation and has a buy rating and $5.60 price target on its shares.
The broker highlights its defensive qualities and strong pricing power. In respect to the latter, the broker suggests that the market "underestimates the uplift to the contribution margin" from recent price rises.
It is also worth noting that since this note, the Powerball product has been on a stunning jackpot run. This could mean stronger than expected earnings and dividends during the second half.
In the meantime, the broker is forecasting dividends per share of 17 cents in FY 2024 and 18 cents in FY 2025. Based on the latest Lottery Corporation share price of $5.06, this will mean fully franked yields 3.3% and 3.5%, respectively.
Lovisa Holdings Ltd (ASX: LOV)
Another ASX dividend stock that could be a great long term pick is Lovisa. It is a leading fast fashion jewellery retailer with over 800 stores across over 30 countries.
But management isn't settling for that. It has huge global expansion plans, which are being overseen by a highly experienced CEO that has an incredible track record.
Morgans is confident in the company's plans. It notes that "investment will be needed to expand LOV's network in the US and Europe and to take it into new markets, but the company has the balance sheet capacity to fund this and the returns could be stellar."
Morgans has an add rating and $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. Based on the current Lovisa share price of $23.02, this implies yields of 3% and 3.5%, respectively.
