Are you looking for new additions to your income portfolio? If you are, then it could be worth checking out the buy-rated ASX dividend stocks listed below.
Here's why brokers have just named them as buys:
Domino's Pizza Enterprises Ltd (ASX: DMP)
Analysts at Goldman Sachs think that this pizza chain operator could be an ASX dividend stock to buy.
The broker has been very cautious on Domino's for some time. However, it finally believes that the tide is turning for the company. As a result, it has just upgraded its shares to a buy rating with a $42.20 price target. It commented:
We have a Buy rating on the stock, as we believe management's focus on franchisee profitability through closure of 80/20-30 locations in Japan/France will help to material improve the quality of the network and help franchisee profitability. With COGs inflation moderating and the company focusing on execution of quality stores, we expect that store growth will be restored following a digestion period. DMP is trading at an undemanding PE valuation relative to its LT average and as such we believe the stock now offers an attractive entry point.
As for dividends, Goldman is forecasting dividends per share of $1.07 in FY 2024, $1.29 in FY 2025, and then $1.56 in FY 2026. Based on the current Domino's share price of $33.61, this equates to dividend yields of 3.2%, 3.8%, and 4.65%, respectively.
Universal Store Holdings Ltd (ASX: UNI)
Bell Potter remains very positive on Universal Store and sees it as an ASX dividend stock to buy.
It is the youth fashion retailer behind the eponymous Universal Store brand, as well as the Perfect Stranger and Thrills brands.
Earlier this week, the broker reiterated its buy rating on its shares with an improved price target of $6.65. It said:
We maintain our BUY rating given the company's store roll-out & brand growth strategy, gross margin expansion via private label product penetration (currently ~43%) and earnings trajectory through to FY25/26e. Management execution remains a key strength for UNI and we see good growth trajectory for the name given the building of core brands together with a disciplined approach to growing its store rollout. While we remain cautious on the overall consumer sentiment through the rest of CY24, given the strength in positive comps in 4Q24 and first two weeks of FY25, we think UNI is well placed as comps continue to remain supportive through 1H25.
Bell Potter is now forecasting fully franked dividends per share of 24 cents in FY 2024, 31.1 cents in FY 2025, and 34.8 cents in FY 2026. Based on the current Universal Store share price of $5.90, this will mean yields of 4.1%, 5.3%, and 5.9%, respectively.
