Income investors that are wanting to make some buy and hold investments might want to check out the three ASX dividend shares listed below.
Here's why they could be great long term options for investors right now:
Accent Group Ltd (ASX: AX1)
The first ASX dividend share that could be a top long term pick for income investors is Accent Group.
It is a footwear focused retailer with over 800 stores across brands such as Sneaker Lab, Platypus, Stylerunner, and The Athlete's Foot.
Bell Potter rates the company highly and believes it is well-positioned for growth in the coming years. This is expected to underpin the payment of fully franked dividends per share of 13 cents in FY 2024 and then 14.6 cents in FY 2025. Based on the latest Accent share price of $2.18, this represents dividend yields of 6% and 6.7%, respectively.
The broker currently has a buy rating and $2.50 price target on its shares.
APA Group (ASX: APA)
APA Group could be a top pick for buy and hold investors. It certainly has been over the past two decades.
During this time, the energy infrastructure company's growing cashflows has allowed it to increase its dividend each year.
The good news for income investors is that analysts at Macquarie appear confident that this strong run can continue. The broker is forecasting further dividend increases to 56 cents per share in FY 2024 and then 58 cents per share in FY 2025. Based on the current APA Group share price of $7.70, this equates to generous 7.3% and 7.5% dividend yields, respectively.
Macquarie has an outperform rating and $9.40 price target on its shares.
Coles Group Ltd (ASX: COL)
Another ASX dividend share that could be a great pick is supermarket giant Coles.
Given its leadership position in Australia, its defensive qualities, and positive long term growth outlook, it ticks a lot of boxes for a buy and hold investment.
Analysts at Macquarie are also feeling positive about Coles and expect the company to return to form in FY 2025 after a tricky time this year.
The broker is expecting this to allow Coles to pay fully franked dividends per share of 66 cents in FY 2024 and then 70 cents in FY 2025. Based on the current Coles share price of $17.75, this equates to yields of 3.7% and 3.95%, respectively.
Macquarie put an outperform rating and $19.40 price target on the company's shares earlier this week.
