3 ASX dividend stocks that brokers rate as buys

Should income investors be buying these stocks this week?

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If you are an income investor on the lookout for new portfolio additions, then read on!

That's because listed below there are three ASX dividend stocks that have recently been named as buys.

Here's what analysts are expecting from their shares in the near term:

Baby Bunting Group Ltd (ASX: BBN)

Baby Bunting could be an ASX dividend stock to buy right now. It is Australia's largest specialty maternity and baby goods retailer.

The last couple of years have not been easy for the company and its shares have suffered. However, there are signs that the worst is now over and a return to consistent growth could be on the cards.

Analysts at Morgans believe this will be the case and "continue to believe BBN will grow earnings in FY25 as its simpler price architecture and greater focus on value start to drive the top line."

The broker expects this to underpin fully franked dividends per share of 6 cents in FY 2024 and then 9.8 cents in FY 2025. Based on the current Baby Bunting share price of $1.81, this will mean dividend yields of 3.3% and 5.4%, respectively.

Morgans has an add rating and a $2.00 price target on its shares.

Stockland Corporation Ltd (ASX: SGP)

Another ASX dividend stock that analysts think could be a buy for income investors is Stockland.

It is a diversified property company that develops, owns, and manages retail centres, business parks, logistics centres, office buildings, residential communities, and retirement living villages.

Citi is feeling positive on the company's outlook and believes it can deliver on its guidance in FY 2024.

It expects this to allow Stockland to pay dividends per share of 26.2 cents in FY 2024 and then 26.6 cents in FY 2025. Based on the current Stockland share price of $4.31, this will mean yields of 6.1% and 6.2% yields, respectively.

Citi currently has a buy rating and a $5.00 price target on the company's shares.

Telstra Group Ltd (ASX: TLS)

A final ASX dividend stock that could be a buy according to analysts is telco giant Telstra.

Goldman Sachs continues to see the company as a top option for income investors due to its defensive earnings and positive growth outlook. The broker also sees a "meaningful medium term opportunity to crystallise value through commencing the process to monetize its InfraCo Fixed assets." It suspects these assets could be worth "between A$22-33bn."

As for dividends, Goldman is forecasting fully franked dividends of 18 cents per share in FY 2024 and then 19 cents per share in FY 2025. Based on the current Telstra share price of $3.65, this equates to yields of 4.9% and 5.2%, respectively.

The broker has a buy and $4.55 price target on its shares.

Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 Telstra Group. 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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