Are you hunting for some new ASX dividend stocks for your income portfolio?
If you are, then you may want to look at the three shares listed below that have been rated as buys by brokers. Here's what you need to know about these picks:
Aurizon Holdings Ltd (ASX: AZJ)
The first pick for investors to consider is Aurizon. It is a rail freight operator with a network covering thousands of kilometres across Australia. This network is integral for the Australian economy, transporting a range of commodities, including mining, agricultural, industrial and retail products to ports and other destinations.
Ord Minnett is feeling positive about the company's outlook. This is due partly to its belief that coal usage in China and India will continue to keep Aurizon's network busy in the future.
In the meantime, it expects the company to be in a position to pay partially franked dividends of 18.6 cents per share in FY 2024 and then 24.4 cents per share in FY 2025. Based on the current Aurizon share price of $3.69, this will mean dividend yields of 5% and 6.6%, respectively.
Ord Minnett has an accumulate rating and $4.70 price target on its shares.
Challenger Ltd (ASX: CGF)
Analysts at Goldman Sachs think that this annuities company could be an ASX dividend stock to buy.
The broker highlights that it likes Challenger due to its "exposure to the growing superannuation market." It also believes that "higher yields should drive a favorable sales environment for retail annuities."
In respect to income, Goldman expects the above to underpin fully franked dividends of 26 cents per share in FY 2024 and 27 cents per share in FY 2025. Based on the current Challenger share price of $6.94, this will mean dividend yields of 3.75% and 3.9%, respectively.
Goldman currently has a buy rating and $7.50 price target on its shares.
Telstra Group Ltd (ASX: TLS)
Another ASX dividend stock that Goldman Sachs thinks is a buy is Telstra.
It is of course Australia's largest telecommunications company. At the last count, it was providing around 22.5 million retail mobile services and 3.4 million retail bundle and data services.
Goldman Sachs was happy with its recent decision to increase its mobile prices. It believes these increases "highlight: (1) mobile market rationality remains (particularly when combined with the recent Optus increase); (2) TLS mobile earnings growth remains strong, driven by subscribers and ARPU."
Its analysts expect the key mobile business to support fully franked dividends of 18 cents per share in FY 2024 and then 19 cents per share in FY 2025. Based on the current Telstra share price of $3.92, this equates to yields of 4.6% and 4.85%, respectively.
Goldman has a buy rating and $4.30 price target on Telstra's shares.
