There are plenty of ASX income stocks out there for investors to choose from, but which ones could be in the buy zone right now?
Three that analysts have recently named as buys are listed below. Here's what they are saying about them:
Cedar Woods Properties Limited (ASX: CWP)
Morgans is a fan of this property company and thinks it could be an ASX income stock to buy now.
Its analysts believe the company's shares are undervalued and deserve to trade on higher multiples. Particularly given "CWP's exposure to lower priced stock in higher growth markets sees further potential to drive earnings."
Morgans expects this to underpin 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.
The broker has an add rating and $5.60 price target on its shares.
Dexus Convenience Retail REIT (ASX: DXC)
Another ASX income stock that Morgans is positive on is the Dexus Convenience Retail REIT. It owns a portfolio of service stations and convenience retail assets across Australia. This portfolio has a long lease expiry profile and contracted annual rent increases, which management expects to deliver a sustainable and strong level of income security.
Speaking of which, Morgans is forecasting the Dexus Convenience Retail REIT to pay dividends per share of 21 cents in both FY 2024 and FY 2025. Based on its current share price of $2.79, this implies yields of 7.5%.
Morgans has an add rating and $3.23 price target on its shares.
IPH Ltd (ASX: IPH)
A final ASX income stock that has been given the thumbs up by analysts is IPH.
It is an international intellectual property (IP) services company with a network of member firms working throughout 10 IP jurisdictions and with clients in more than 25 countries. Among its customer base are Fortune Global 500 companies and other multinationals.
Goldman Sachs is a fan of the company and sees it as a great option for investors right now. It is forecasting fully franked dividends of 34 cents per share in FY 2024 and 37 cents per share in FY 2025. Based on the current IPH share price of $6.30, this represents yields of 5.4% and 5.9%, respectively.
The broker has a buy rating and $8.70 price target on IPH's shares.
