If you want some high-quality options in your income portfolio, then it could be worth checking out the ASX dividend stocks listed below.
That's because they have been named as best buys by brokers in March. Here's what they are saying:
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Healthco Healthcare and Wellness REIT (ASX: HCW)
Bell Potter thinks that this healthcare property company could be a great option for income investors.
It has named the ASX dividend stock on its preferred list in March with a buy rating and a $1.70 price target. The broker commented:
HCW has underperformed the REIT sector last 3 months (-10% vs. +22% XPJ) following bond yield reversion and is attractively priced at 20% discount to NTA (but only REIT to record flat to positive valuation movement at 1H24) with double digit 3 year EPS CAGR given high relative sector debt hedging and ability to grow its $1bn development pipeline via attractive YoC spread to marginal cost of debt. Longer term, HCW has significant scope for growth with an estimated $218 billion addressable market where an ageing and growing population should underpin long-term sector demand.
Bell Potter expects dividends per share of 8 cents in FY 2024 and 8.3 cents in FY 2025. Based on its current share price of $1.43, this will mean yields of 5.6% and 5.8%, respectively.
Woodside Energy Group Ltd (ASX: WDS)
Another ASX dividend stock that is rated highly is energy giant Woodside.
Morgans has it on its best idea list with an add rating and a $34.20 price target. It sees recent share price weakness as a buying opportunity. The broker explains:
A tier 1 upstream oil and gas operator with high-quality earnings that we see as likely to continue pursuing an opportunistic acquisition strategy. WDS's share price has been under pressure in recent months from a combination of oil price volatility and approval issues at Scarborough, its key offshore growth project. With both of those factors now having moderated, with the pullback in oil prices moderating and work at Scarborough back underway, we see now as a good time to add to positions. Increasing our conviction in our call is the progress WDS is making through the current capex phase, while maintaining a healthy balance sheet and healthy dividend profile.
As for income, Morgans is forecasting fully franked dividends per share of $1.32 in FY 2024 and $1.12 in FY 2025. Based on the current Woodside share price of $29.71, this will mean yields of 4.4% and 3.8%, respectively.
