2 excellent ASX dividend shares that analysts love

Analysts are feeling bullish about these income options.

| More on:
A businessman hugs his computer and smiles.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

If you're on the lookout for some new ASX dividend shares for your portfolio, then it could be worth checking out the two listed below.

Here's what analysts are saying about them:

Lovisa Holdings Ltd (ASX: LOV)

Lovisa could be an ASX dividend share to buy according to analysts. It is a leading fast fashion jewellery retailer with over 800 stores across over 30 countries.

But if you thought that would be where its journey ends, you would be wrong. Management has huge global expansion plans and has just entered the massive China market. And importantly, this expansion is being overseen by a highly experienced CEO that has an incredible track record of taking brands global.

The team at Morgans is very bullish on the company's expansion 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."

This could be great news for the company's earnings and dividends over the next decade. In the meantime, Morgans 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 $25.10, this implies yields of 2.8% and 3.2%, respectively.

The broker has an add rating and $27.50 price target on its shares.

Suncorp Group Ltd (ASX: SUN)

Goldman Sachs is feeling positive about Suncorp and sees it as an ASX dividend share to buy.

Suncorp is the insurance giant behind a huge collection of brands. This includes AAMI, Apia, Bingle, CIL Insurance, GIO, Shannons, Terri Scheer, and Vero.

The broker believes that Suncorp is well-positioned thanks "in large part [to] the tailwinds that exist in the general insurance market." This includes "very strong renewal premium rate increases and the benefit of higher investment yields."

Goldman expects this to underpin fully franked dividends per share of 75 cents in FY 2024 and 82 cents in FY 2025. Based on the current Suncorp share price of $14.44, this will mean yields of 5.2% and 5.7%, respectively.

The broker has a buy rating and $15.00 price target on the company's shares.

Motley Fool contributor James Mickleboro has positions in Lovisa. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Lovisa. The Motley Fool Australia has recommended Lovisa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Dividend Investing

Man holding out Australian dollar notes, symbolising dividends.

Here's the current ASX dividend yield on the Vanguard Australian Shares ETF (VAS)

How much passive income can one expect from this popular index fund?

Read more »

A man in a suit smiles at the yellow piggy bank he holds in his hand.
Dividend Investing

NAB stock: Should you buy the 4.7% yield?

Do analysts think this banking giant is a buy for income investors?

Read more »

Person handing out $100 notes, symbolising ex-dividend date.
Dividend Investing

The smartest ASX dividend shares to buy with $500 right now

Analysts have put buy ratings on these shares for a reason.

Read more »

Woman calculating dividends on calculator and working on a laptop.
Dividend Investing

1 ASX dividend stock down 17% to buy right now

Analysts see a lot of value and big dividend yields in this beaten down stock.

Read more »

Excited woman holding out $100 notes, symbolising dividends.
Dividend Investing

3 high-yield ASX 300 dividend stocks to buy for your income portfolio

Analysts expect big dividend yields from these buy-rated shares.

Read more »

A golfer celebrates a good shot at the tee, indicating success.
Dividend Investing

These ASX dividend winners keep giving investors a pay rise

These stocks have built an impressive consecutive dividend growth streak.

Read more »

a man in a business shirt and tie takes a wide leap over a large steel trap with jagged teeth that is place directly underneath him.
Dividend Investing

3 ASX value traps I wouldn't buy for dividends right now

I'd stay away from these shares if you don't want a nasty dividend surprise.

Read more »

Smiling woman holding Australian dollar notes in each hand, symbolising dividends.
Dividend Investing

2 ASX passive income shares paying 8% and 13% yields

I think both these high yielding ASX dividend stocks offer long-term passive income potential.

Read more »