Buy these ASX income shares next week

Brokers are saying good things about these income options.

| More on:
Happy couple enjoying ice cream in retirement.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

There are a lot of ASX income shares out there for investors to choose from at present.

Two that are highly rated are named below. Here's what analysts are saying about them:

Cedar Woods Properties Limited (ASX: CWP)

Analysts at Morgans are positive on this property company and think it could be an ASX income share to buy.

The broker has Cedar Woods' shares on its best ideas list with an add rating and $5.60 price target.

Its analysts believe the company's shares are undervalued and deserve to trade on higher multiples. They 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.

In respect to income, 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 $4.60, this will mean dividend yields of 3.9% and 4.35%, respectively.

Healthco Healthcare and Wellness REIT (ASX: HCW)

Another ASX income share that could be a buy next week is the Healthco Healthcare and Wellness REIT.

Bell Potter is a big fan of the health and wellness focused property company and has a buy rating and $1.50 price target on its shares.

It believes that recent weakness has created a compelling buying opportunity for investors. The broker said:

HCW has underperformed the REIT sector last 3 months (-10% vs. +22% XPJ) following bond yield reversion and is attractively priced at 20% discount to NTA (but only REIT to record flat to positive valuation movement at 1H24) with double digit 3 year EPS CAGR given high relative sector debt hedging and ability to grow its $1bn development pipeline via attractive YoC spread to marginal cost of debt. Longer term, HCW has significant scope for growth with an estimated $218 billion addressable market where an ageing and growing population should underpin long-term sector demand.

As for dividends, Bell Potter is forecasting dividends per share of 8 cents in FY 2024 and then 8.3 cents in FY 2025. Based on its current share price of $1.15, this would mean generous yields of 6.95% and 7.2%, 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 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.

More on Dividend Investing

Man holding Australian dollar notes, symbolising dividends.
Dividend Investing

Income booster: Here's an ASX dividend stock that yields 6% and provides quarterly cash payments

Who doesn't love more frequent payments?

Read more »

A smiling woman with a handful of $100 notes, indicating strong dividend payments
Dividend Investing

ASX passive income: Earn $1000/month

Here's how you could turn the ASX into your own personal ATM.

Read more »

A happy young couple lie on a wooden deck using a skateboard for a pillow.
Dividend Investing

Top ASX passive income shares to buy before June 30

Hoping for some extra income in the new financial year?

Read more »

Three smiling corporate people examine a model of a new building complex.
Dividend Investing

Mining, supermarkets, and property: 3 ASX 200 dividend stocks to buy

These stocks from different sides of the market have been named as buys by analysts.

Read more »

a man sits on a ridge high above a large city full of high rise buildings as though he is thinking, contemplating the vista below.
Dividend Investing

9 popular ASX REITs with ex-dividend dates next week

Investors are in line for some massive dividend payments from these REITs.

Read more »

Woman with a floatable flamingo at a beach, symbolising passive income.
Dividend Investing

3 top ASX 200 stocks that could create lasting passive income into retirement

Passive income investors have a number of top ASX 200 shares to choose from. Here’s why I like these three.

Read more »

Middle age caucasian man smiling confident drinking coffee at home.
Dividend Investing

Buy these ASX dividend shares for 5% to 6% yields

Analysts think income investors should be snapping up these buy-rated stocks.

Read more »

A women cheers with clenched fists having read some good news on her laptop.
Dividend Investing

3 excellent ASX dividend shares to buy now

Analysts say that these shares are in the buy zone right now for income investors.

Read more »