Analysts say these ASX dividend shares are top picks in July

These stocks could be top options for income investors this month.

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Do you have room for some new additions in your income portfolio? If you do, then it could be worth checking out the two ASX dividend shares listed below.

That's because analysts have named them as top picks this month. Here's what they are saying about them:

Cedar Woods Properties Limited (ASX: CWP)

Morgans believes that income investors should look at property developer Cedar Woods Properties.

The broker thinks that the company has a positive outlook and that its shares are cheap 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.

In respect to dividends, the broker is estimating 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 $4.72, this will mean dividend yields of 3.8% and 4.2%, respectively.

Morgans has an add rating and $5.60 price target on the ASX dividend stock.

Healthco Healthcare and Wellness REIT (ASX: HCW)

Over at Bell Potter, its analysts think that this health and wellness focused property company could be a great option. Particularly given the recent underperformance of its shares.

The broker highlights its positive earnings growth outlook and huge addressable market. It 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 income, it is forecasting dividends per share of 8 cents in FY 2024 and then 8.3 cents in FY 2025. Based on the current Healthco Healthcare and Wellness REIT unit price of $1.08, this will mean yields of 7.4% and 7.7%, respectively.

Bell Potter currently has a buy rating and $1.50 price target on its shares.

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.

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