2 of the best ASX dividend shares to buy according to Morgans

The broker is feeling very positive about these income options.

| More on:
A businessman looking at his digital tablet or strategy planning in hotel conference lobby. He is happy at achieving financial goals.

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 plenty of quality ASX dividend shares for investors to choose from on the local share market.

But which ones could be buys right now?

Two that have been tipped as best ideas by analysts at Morgans are listed below. Here's why they could be worth a look for your income portfolio:

Inghams Group Ltd (ASX: ING)

The first ASX dividend share that Morgans thinks investors should buy is Inghams. The broker has an add rating and a $4.40 price target on its shares.

It feels that the poultry producer's shares are undervalued at current levels. This is particularly the case given its leadership position and attractive dividend yield. Its analysts explain:

ING remains undervalued trading on a low PE multiple, especially for what is a market leader, with a vertically integrated operating model and assets that are difficult and costly to replicate. It is also leveraged to poultry – the affordable, healthy, sustainable and growth protein. Additionally, ING offers an attractive fully franked dividend yield.

As for income, the broker is forecasting fully franked dividends of 22 cents per share in FY 2024 and then 23 cents per share in FY 2025. Based on the current Inghams share price of $3.66, this equates to dividend yields of 6% and 6.3%, respectively, for investors.

Universal Store Holdings Ltd (ASX: UNI)

Another ASX dividend share that Morgans is bullish on is youth fashion retailer Universal Store. Morgans currently has an add rating and a $6.50 price target on its shares.

The broker likes the company due to its positive long-term growth outlook thanks to its in-demand brands and expansion opportunities. It said:

Our positive view about the fundamental long-term appeal of Universal Store as a retail proposition and investment opportunity is undiminished. The growth opportunities are in place. Universal Store's women's banner Perfect Stranger is performing well, justifying an acceleration in its network expansion; the prospect of building out the wholesale distribution channels acquired with CTC is compelling; and customers continue to respond well to the Universal Store banner, rendering its plan to grow this network to more than 100 stores more than reasonable. Although its core youth customers are far from buoyant, they continue to spend.

Morgans is forecasting fully franked dividends per share of 26 cents in FY 2024 and then 29 cents in FY 2025. Based on its current share price of $5.70, this will mean yields of 4.55% and 5.1%, 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.

More on Dividend Investing

Woman in a hammock relaxing, symbolising passive income.
Dividend Investing

Hoping to retire? I'd buy these ASX 200 dividend shares for passive income

I think these ASX 200 dividend stocks will continue to reward passive income investors for years to come.

Read more »

Australian dollar notes rolled into bundles.
Dividend Investing

Analysts say these 4 ASX dividend shares are buys

Income investors might want to check out these buy-rated dividend stocks.

Read more »

Man holding fifty Australian Dollar banknote in his hands, symbolising dividends, symbolising dividends.
Dividend Investing

Buy Rio Tinto and these excellent ASX dividend shares

Goldman Sachs is tipping these dividend shares are top buys.

Read more »

Excited woman holding out $100 notes, symbolising dividends.
Dividend Investing

Global companies just paid a record $512 billion in Q1 dividends. Here's how ASX 200 shares stacked up

ASX dividend stocks increased payouts by 2.0% in Q1, according to Janus Henderson, with BHP dragging on growth.

Read more »

shopping trolley filled with coins representing asx retail share price.ce
Dividend Investing

Should you buy Coles shares for that hefty 6% dividend yield?

Should Coles stock go in your shopping basket?

Read more »

A happy woman and girl kick back on a couch in spa robes with cucumbers on their eyes, indicating they can earn passive income while relaxing.
Dividend Investing

2 of the best passive-income-focused ASX shares to consider buying in June

Wanting passive income? Analysts think these shares could be top options.

Read more »

Happy man holding Australian dollar notes, representing dividends.
Dividend Investing

These ASX dividend shares offer 6%+ yields right now

Analysts think these high yield stocks are in the buy zone.

Read more »

Happy couple enjoying ice cream in retirement.
Dividend Investing

Why I keep loading up on these 2 ASX passive income machines

I can’t stop buying these dividend stocks.

Read more »