2 cheap ASX All Ords shares to buy for growth and dividends

Analysts think these shares are cheap and could pay out growing dividends.

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If you are on the lookout for the dream combination of growth and attractive dividend yields, then you may want to check out the two ASX All Ords shares listed below.

These shares have been tipped to grow their earnings and dividends strongly in the coming years. And the even better news is that they could be cheap according to analysts. Let's see what they are saying about them:

Treasury Wine Estates Ltd (ASX: TWE)

Morgans thinks that this wine giant's shares could be undervalued at present. The broker has an add rating and a $14.03 price target on the ASX All Ords share. This implies a potential upside of almost 22% for investors over the next 12 months.

It is feeling very positive about its acquisition in the United States. It said:

It may take some time for the market to digest TWE's acquisition of Paso Robles luxury wine business, DAOU Vineyards (DAOU) for US$900m (A$1.4bn) given it required a large capital raising. The acquisition is in line with TWE's premiumisation and growth strategy and will strengthen a key gap in Treasury Americas (TA) portfolio. Importantly, DAOU has generated solid earnings growth and is a high margin business. It consequently allowed TWE to upgrade its margins targets. While not without risk given the size of this transaction, if TWE delivers on its investment case, there is material upside to our valuation.

As for dividends, the broker expects fully franked dividends of 36.4 cents in FY 2024 and then 44.8 cents in FY 2025. This will mean dividend yields of 3.15% and 3.9%, respectively.

Woolworths Group Ltd (ASX: WOW)

Goldman Sachs thinks that this ASX All Ords share could be cheap at current levels.

The broker has a buy rating and a $39.40 price target on the supermarket giant's shares. This suggests that they could rise 24% from current levels.

Goldman highlights that Woolworths' shares are trading on lower-than-normal multiples despite having a positive outlook. It said:

WOW is the largest supermarket chain in Australia with an additional presence in NZ, as well as selling general merchandise retail via Big W. We are Buy rated on the stock as we believe the business has among the highest consumer stickiness and loyalty among peers, and hence has strong ability to drive market share gains via its omni-channel advantage, as well as its ability to pass through any cost inflation to protect its margins, beyond market expectations. The stock is trading below its historical average (since 2018), and we see this as a value entry level for a high-quality and defensive stock.

In respect to dividends, the broker has pencilled in fully franked dividends of $1.08 per share in FY 2024 and then $1.14 per share in FY 2025. This represents yields of 3.4% and 3.6%, respectively.

Motley Fool contributor James Mickleboro has positions in Treasury Wine Estates. 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 recommended Treasury Wine Estates. 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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