Are you hunting ASX income stocks to buy? If you are, then it could be worth checking out the two stocks listed below.
They have both been named as buys and tipped to provide investors with good yields in the near term.
Here's what analysts are saying about them:
Healthco Healthcare and Wellness REIT (ASX: HCW)
Bell Potter thinks that HealthCo Healthcare & Wellness REIT could be an ASX income stock to buy.
It is a real estate investment trust with a mandate to invest in hospitals, aged care, childcare, government, life sciences and research, and primary care and wellness property assets. Management notes that its objective is to provide shareholders with exposure to a diversified portfolio underpinned by attractive megatrends.
Bell Potter is a big fan and highlights its significant development pipeline and huge addressable market as reasons to buy. 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.
In respect to dividends, the broker 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 $1.16, this will mean dividend yields of 6.9% and 7.2%, respectively.
Bell Potter has a buy rating and $1.50 price target on its shares.
Universal Store Holdings Ltd (ASX: UNI)
Over at Morgans, its analysts think that Universal Store could be a great option for income investors.
It is the youth fashion retailer behind the eponymous Universal Store brand. In addition, it has potential to grow its smaller Perfect Stranger and Thrills brands.
Commenting on its bullish view, the broker said:
Our positive view about the fundamental long-term appeal of Universal Store as a retail proposition and investment opportunity is undiminished. The growth opportunities are in place. Universal Store's women's banner Perfect Stranger is performing well, justifying an acceleration in its network expansion; the prospect of building out the wholesale distribution channels acquired with CTC is compelling; and customers continue to respond well to the Universal Store banner, rendering its plan to grow this network to more than 100 stores more than reasonable. Although its core youth customers are far from buoyant, they continue to spend.
Morgans is forecasting fully franked dividends of 26 cents per share in FY 2024 and then 29 cents per share in FY 2025. Based on its current share price of $5.08, this will mean yields of 5.1% and 5.7%, respectively.
The broker has an add rating and $6.50 price target on the ASX income stock.
