The good news for income investors is that there are lots of dividend stocks to choose from on the benchmark ASX 200 index.
But which ones could be in the buy zone this month? Two that analysts are tipping as top buys are listed below. Here's what they are saying about them:
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Elders Ltd (ASX: ELD)
Analysts at Morgans think that agribusiness company Elders could be a quality option for income investors.
While it is having a reasonably tough time this year, the broker believes it will bounce back strongly in FY 2025. After which, it thinks it will be onwards and upwards for the company. It explains:
ELD is one of Australia's leading agribusinesses. It has an iconic brand, 185 years of history and a national distribution network throughout Australia. With the outlook for FY25 looking more positive and many growth projects in place to drive strong earnings growth over the next few years, ELD is a key pick for us. It is also trading on undemanding multiples and offers an attractive dividend yield.
Morgans is forecasting partially franked dividends of 26 cents per share in FY 2024 and then 38 cents per share in FY 2025. Based on the current Elders share price of $8.86, this will mean dividend yields of 3% and 4.3%, respectively.
The broker has an add rating and $9.00 price target on its shares.
Super Retail Group Ltd (ASX: SUL)
Over at Goldman Sachs, its analysts think that Super Retail could be an ASX 200 dividend stock to buy right now. It is the owner of popular store brands BCF, Supercheap Auto, Macpac, and Rebel.
Goldman likes the company due to its belief that it is positioned to handle the tough economic environment. This is thanks partly to its huge loyalty program. The broker explains:
We believe SUL will display resilience in a softer economic environment that is built upon its competitive advantage of high loyalty (~11.0m active members accounting for >75% of sales) and this will be further bolstered as the company launches the Rebel loyalty program and continues to build personalisation capabilities. Hence, we are Buy-rated on SUL.
Its analysts expect Super Retail to be in a position to pay fully franked dividends per share of 67 cents in FY 2024 and then 73 cents in FY 2025. Based on its current share price of $14.23, this will mean yields of 4.7% and 5.1%, respectively.
The broker has a buy rating and $17.80 price target on its shares.
