Luckily for income investors, there is no shortage of dividend payers on the Australian share market.
But which ASX dividend stocks could be quality options for an income portfolio right now?
Well, listed below are two stocks that have recently been named as buys by analysts. In addition, they have been tipped to provide investors with dividend yields of at least 5.5% in FY 2024 and FY 2025.
Let's now take a look at why analysts are bullish and what they are saying about these stocks:
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Accent Group Ltd (ASX: AX1)
The first ASX dividend stock for investors to look at according to analysts at Bell Potter is Accent Group.
It is a footwear focused retailer that operates over 800 stores (and numerous online stores) across brands including HypeDC, Sneaker Lab, Platypus, Stylerunner, and The Athlete's Foot.
Following a review of the retail sector this week, the broker remains very positive on Accent Group. It said: "Our revenue assumptions for Accent Group (AX1) see improving comps towards the end of the 2H and we remain positive on recovering trends with positive commentary from global footwear brands such as Skechers & Deckers (Hoka). We also focus on incremental benefits to AX1's younger customer demographics who we think could benefit from the upcoming tax cuts."
Bell Potter expects this to underpin fully franked dividends per share of 13 cents in FY 2024 and then 14.6 cents in FY 2025. Based on the latest Accent share price of $1.83, this represents dividend yields of 7.1% and 8%, respectively.
The broker currently has a buy rating and $2.50 price target on its shares.
Dexus Industria REIT (ASX: DXI)
Another ASX dividend stock that could be a buy is Dexus Industria.
It is a real estate investment trust that primarily invests in high quality industrial warehouses located across capital cities such as Sydney, Melbourne, and Adelaide.
Morgans is positive on the company. It notes that "DXI's industrial portfolio remains robust with the outlook positive for rental growth. The development pipeline also provides near and medium-term upside potential and post asset sales there is balance sheet capacity to execute."
The broker currently has an add rating and $3.18 price target on its shares.
In respect to dividends, Morgans expects dividends per share of 16.4 cents in FY 2024 and 16.6 cents in FY 2025. Based on the current Dexus Industria share price of $2.97, this will mean dividend yields of 5.5% and 5.6%, respectively.
