These ASX dividend stocks could be top buys in March

Analysts think these stocks are in the buy zone for income investors.

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The good news for income investors is that there are plenty of ASX dividend stocks to choose from on the Australian share market.

But which ones could be buys in March?

Let's take a look at two that have recently been named as buys:

Dexus Convenience Retail REIT (ASX: DXC)

The first ASX dividend stock that could be a buy is Dexus Convenience Retail REIT. It is a real estate investment trust that owns high quality service stations and convenience retail assets.

Bell Potter thinks the company is a good option for income investors. It said:

With the benefit of a further asset disposal today for DXC at book value (+25bp vs. prior BV, but consistent with mkt), we see clear price discovery for DXC where there have been 53 petrol station transactions in CY23, proving up book value. Notwithstanding, DXC trades at a 27% discount to NTA and screens value to us.

The broker has a buy rating and $3.00 price target on its shares.

Bell Potter is forecasting dividends per share of 20.9 cents in FY 2024 and 20.7 cents in FY 2025. Based on its current share price of $2.80, this equates to yields of 7.45% and 7.4%, respectively.

Universal Store Holdings Ltd (ASX: UNI)

Another ASX dividend stock that has been named as a buy is Universal Store. It is the youth fashion retailer behind the Universal Store, Perfect Stranger, and Thrills brands.

Morgans was impressed with the company's half-year results this month. It commented:

UNI's focus on offering high quality, fashionable apparel in a well presented store environment with high levels of service is paying off. Despite the challenges facing the consumer discretionary market, especially among the younger demographic, the 1H24 performance was highly resilient. Costs were well controlled and margins outperformed expectations, resulting in EBIT coming in 6% above forecast. The core youth consumer appears to be picking up. We have increased our FY24 EBIT estimate by 4% and reiterate our Add rating with an increased target price.

Morgans has an add rating and $5.65 price target on its shares.

As for income, the broker expects fully franked dividends per share of 26 cents in FY 2024 and then 29 cents in FY 2025. Based on the current Universal Store share price of $4.48, this will mean yields of 5.8% and 6.5%, respectively.

Motley Fool contributor James Mickleboro has positions in Universal Store. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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