Analysts say these excellent ASX income shares are buys

Here's what analysts are saying about these stocks.

| More on:
Person handing out $50 notes, symbolising ex-dividend date.

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

There are a lot of options on the ASX for income investors to choose from.

But which ASX income stocks could be top options this week?

Two that analysts are feeling bullish on are listed below. Here's what sort of dividend yields you can expect from them:

Dexus Convenience Retail REIT (ASX: DXC)

The first ASX income stock that analysts think could be a buy this week is Dexus Convenience Retail REIT. It is a property company with a focus on service stations and convenience retail assets located across Australia.

Bell Potter likes the company due partly to its attractive valuation. It commented:

[W]e 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.

In addition, the broker highlights the company's generous forecast dividend yields. It is expecting dividends per share of 20.7 cents in FY 2024 and 21.7 cents in FY 2025. Based on its current share price of $2.76, this equates to yields of 7.5% and 7.85%, respectively.

Bell Potter has a buy rating and $3.00 price target on its shares.

Super Retail Group Ltd (ASX: SUL)

Another ASX income stock that has been rated as a buy is Super Retail. It is the name behind popular retail brands BCF, Macpac, Rebel, and Supercheap Auto.

Goldman Sachs is very positive on the retailer and has buy rating and $17.80 price target on its shares.

The broker was impressed with Super Retail's performance in the first half of FY 2024, noting that "the 1H24 result was high quality and the strategic growth plan is intact." In addition, it likes the company due to its resilient brands. It adds:

We believe SUL will display resilience in a softer economic environment that is built upon its competitive advantage of high loyalty (~11.0m active members accounting for >75% of sales) and this will be further bolstered as the company launches the Rebel loyalty program and continues to build personalisation capabilities.

Goldman expects this to underpin fully franked dividends per share of 67 cents in FY 2024 and then 73 cents in FY 2025. Based on the latest Super Retail share price of $15.40, this will mean good yields of 4.35% and 4.75%, respectively.

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 positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has positions in and has recommended Super Retail Group. 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.
ETFs

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 »