Are you looking for ASX income stocks to buy this month? If you are, it could be worth looking at the two in this article.
That's because they have recently been named as buys by Morgans and tipped to offer attractive dividend yields.
Here's what the broker is saying about them:
Cedar Woods Properties Limited (ASX: CWP)
Morgans thinks this property company could be an ASX income stock to buy. In fact, the broker rates the company high enough to have it on its best ideas list, with an add rating and a $5.60 price target on its shares.
It believes the company's shares are undervalued and deserve to trade on higher multiples. It said:
CWP is a volume business and the demand for lots looks to be improving, with margins to invariably follow. CWP's exposure to lower priced stock in higher growth markets sees further potential to drive earnings. On this basis, we see every reason for CWP to trade at NTA and potentially at a premium, were the housing cycle to gain steam through FY25/26.
As for dividends, Morgans is forecasting dividends per share of 18 cents in FY 2024 and then 20 cents in FY 2025. Based on the current Cedar Woods Properties share price of $4.48, this will mean dividend yields of 4% and 4.5%, respectively.
Dexus Industria REIT (ASX: DXI)
Another ASX income stock that Morgans rates highly is Dexus Industria. It is a real estate investment trust with a focus on industrial warehouses.
The broker currently has an add rating and a $3.18 price target on its shares.
Morgans thinks that Dexus Industria is well-placed thanks to the strong demand for industrial property and its development pipeline. It explains:
The portfolio is valued at $1.6bn across +90 properties with 89% of the portfolio weighted towards industrial assets (WACR 5.38%). The portfolio's WALE is around 6 years and occupancy 97.5%. Across the portfolio 50% of leases are linked to CPI with the balance on fixed increases between 3-3.5%. While we expect cap rates to expand further in the near term, 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.
In respect to income, the broker is forecasting dividends per share of 16.4 cents in FY 2024 and then 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.
