Guess which ASX dividends stocks analysts think are top buys

Analysts think these shares have decent upside potential and attractive yields.

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Income investors have a lot of options on the Australian share market.

So much so, it can be hard to decide which ASX dividend stocks to buy above others.

But don't worry, to narrow things down I have picked out three options that are rated highly by brokers right now. They are as follows:

Eagers Automotive Ltd (ASX: APE)

Bell Potter thinks that this automotive retailer could be a top ASX dividend stock to buy this month.

According to a note from this week, the broker has reiterated its buy rating on its shares with a slightly trimmed price target of $14.75. This is notably higher than its current share price, which means market-beating returns could be on the cards.

In addition, Bell Potter expects Eagers Automotive to pay 74 cents per share fully franked dividends in FY 2024, FY 2025, and FY 2026. Based on its current share price of $12.50, this represents a 5.9% dividend yield each year.

Inghams Group Ltd (ASX: ING)

Morgans' analysts think that Inghams, Australia's leading poultry producer, could be an ASX dividend stock to buy.

The broker believes that its shares are cheap at current levels, especially for a company that has a market leadership position and looks set to provide investors with big dividend yields in the near term.

Morgans currently has an add rating and a $4.40 price target on the company's shares.

As for dividends, 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 $3.87, this equates to dividend yields of 5.7% and 5.95%, respectively.

Sonic Healthcare Limited (ASX: SHL)

Another ASX dividend stock that Morgans is positive on is Sonic Healthcare. It is a leading medical diagnostics company with operations worldwide.

The broker believes now could be a good time to pounce on the company's shares after a tough period. It highlights that "management remains confident in a turnaround, outlining numerous near/medium term drivers supporting underlying profitability and reflected in guidance, which we view as achievable."

Morgans has an add rating and $34.94 price target on its shares.

As for income, the broker is forecasting dividends per share of $1.04 in FY 2024 and then $1.16 in FY 2025. Based on the current Sonic share price of $26.69, this will mean yields of 3.9% and 4.3%, respectively.

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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Eagers Automotive Ltd and Sonic Healthcare. 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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