Brokers say these ASX dividend stocks are buys

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

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If you are on the lookout out for some ASX dividend stocks to buy for your income portfolio, then you may want to check out the three listed below.

Here's what you need to know about these income options in May:

Baby Bunting Group Ltd (ASX: BBN)

Morgans thinks that Baby Bunting could be an ASX dividend stock to buy right now.

Its analysts acknowledge that recent times have been tough for the baby products retailer. However, it feels that there is reason to be optimistic.

That's because its analysts "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."

Morgans expects this to support the payment of 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 $1.78, this will mean dividend yields of 3.4% and 5.5%, respectively.

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

Stockland Corporation Ltd (ASX: SGP)

Over at Citi, its analysts think that Stockland could be an ASX dividend stock to buy.

Stockland 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 is forecasting some big yields from its shares in the near term.

The broker is forecasting 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 $4.44, this will mean yields of 5.9% and 6% yields, respectively.

Citi currently has a buy rating and a $5.20 price target on its shares.

Suncorp Group Ltd (ASX: SUN)

Goldman Sachs thinks that Suncorp could be a top ASX dividend stock to buy this month.

It is one of Australia's largest insurance companies. It operates countless brands including AAMI, Apia, Bingle, GIO, Shannons, and Vero.

And while Suncorp also has banking operations, these are in the process of being sold to ANZ Group Holdings Ltd (ASX: ANZ). Once that completes, Suncorp will be a pure-play insurance provider. It is also tipped to return some of the proceeds to shareholders via a special dividend or buyback.

In the meantime, Goldman Sachs expects fully franked dividends per share of 78 cents in FY 2024 and 83 cents in FY 2025. Based on the current Suncorp share price of $16.20, this will mean dividend yields of 4.8% and 5.1%, respectively.

The broker has a buy rating and a $17.54 price target on the company's 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 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.

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