Morgans says these ASX dividend stocks are buys

Here's what the broker is saying about these shares.

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There are plenty of ASX dividend stocks to choose from on the local market, but which ones could be buys in March?

Two shares that were recently identified as buys by analysts at Morgans are listed below. Here's what its analysts are saying about them:

Bapcor Ltd (ASX: BAP)

Morgans thinks that this auto parts retailer could be an ASX dividend stock to buy. It has an add rating and $6.60 price target on its shares.

While the broker acknowledges that a change of management creates a bit of uncertainty, it believes its current valuation incorporates this. Morgans commented:

However, despite incurring mgmt and strategy change and a difficult cost environment, the business has been resilient. We think the valuation point continues to provide value on a medium-term view.

In respect to dividends, the broker is forecasting the company to pay 19.5 cents per share in FY 2024 and 23 cents per share in FY 2025. Based on the current Bapcor share price of $5.95, this implies dividend yields of 3.3% and 3.9%, respectively.

Dexus Convenience Retail REIT (ASX: DXC)

Another ASX dividend stock that could be a buy according to Morgans is Dexus Convenience Retail REIT. It is a convenience retail and service station property company.

The broker believes that the company's shares are great value at current levels. So much so, last month it put an add rating and $3.23 price target on them. This implies almost 17% upside for investors from current levels.

As for income, the broker is expecting big dividend yields in the coming years. Morgans is forecasting dividends per share of 21 cents in both FY 2024 and FY 2025. Based on its current share price of $2.77, this implies yields of 7.6%.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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 recommended Bapcor. 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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