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.
