Income investors are a lucky bunch! That's because there are plenty of ASX income stocks to choose from on the local market.
But which ones could be in the buy zone in August?
Three that analysts are bullish on are listed below. Here's what they are saying about them:
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Eagers Automotive Ltd (ASX: APE)
The first ASX income stock that could be a great option in August is Eagers Automotive. It is the leading automotive retail group in the Australia and New Zealand region.
Morgans thinks that its shares are great value at current levels and sees huge upside potential following significant weakness this year. The broker recently put an add rating and $14.35 price target on its shares.
Another positive is that Morgans is expecting some big yields from its shares. The broker is forecasting fully franked dividends of 72.7 cents per share in FY 2024 and then 74 cents per share in FY 2025. Based on its current share price of $10.63, this represents dividend yields of 6.85% and 7%, respectively.
Rural Funds Group (ASX: RFF)
Another ASX income stock that could be a great buy is Rural Funds. It is the owner of a portfolio of high-quality agricultural assets across areas including orchards, vineyards, cropping, and cattle farms.
Bell Potter is tipping its shares as a buy. The broker highlights that "RFF trades at a historical high discount to its market NAV per unit. " It feels that the "discount that RFF is trading appears excessive and we are seeing a valuable opportunity in RFF." Bell Potter has a buy rating and $2.40 price target on its shares.
As for income, the broker is expecting dividends per share of 11.7 cents in both FY 2024 and FY 2025. Based on the current Rural Funds share price of $2.13, this will mean yields of 5.5% for investors.
Super Retail Group Ltd (ASX: SUL)
A third ASX income stock that analysts are tipping as a buy is Super Retail. It is the retail group behind popular store brands BCF, Macpac, Rebel, and Super Cheap Auto.
Goldman Sachs is a big fan of Super Retail and thinks it would be a good option right now. This is because it believes the company is "building a competitive advantage through 11.1mn members and 76% sales to members." Goldman feels this will "help drive sales in a more complex operating environment." For this reason, it has a buy rating and $17.80 price target on its shares.
In respect to dividends, the broker expects Super Retail to pay fully franked dividends per share of 67 cents in FY 2024 and then 73 cents in FY 2025. Based on the latest Super Retail share price of $16.02, this will mean dividend yields of 4.2% and 4.6%, respectively.
