Income investors are spoilt for choice on the Australian share market.
But which ASX dividend stocks could be great options right now? Let's take a look at two top picks according to analysts.
Here's what they are saying about them and what sort of dividend yields you can expect in the near term:
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Origin Energy Ltd (ASX: ORG)
Goldman Sachs thinks that this energy giant could be an ASX dividend stock to buy when the market reopens. It has a buy rating and $10.75 price target on its shares.
It believes the company is well placed to pay attractive dividends thanks largely to the strength of the APLNG business. It said:
We expect electricity markets will remain volatile where ~50% of FY25E EBITDA from APLNG should reduce risk, while supporting a strong 6% dividend yield. Standout gas supply portfolio and flexible power firming fleet: ORG operates the National Electricity Market's (NEM) largest gas generation fleet at 3 GW which will become increasingly important to firm renewable generation, while maintaining a A$10/GJ cost of gas supply which should support margin expansion or market share gain.
Goldman Sachs is forecasting dividends per share of 60 cents in FY 2025 and then 59 cents in FY 2026. Based on the current Origin share price of $9.66, this will mean dividend yields of 6.2% and 6.1%, respectively.
Telstra Group Ltd (ASX: TLS)
Analysts at Bell Potter are tipping this telco leader as an ASX dividend stock to buy. The broker has a buy rating and $4.30 price target on its shares.
Bell Potter was pleased with the company's FY 2024 results and sees value in its shares. Particularly when you consider its dividend yield compared to similar big name blue chips. It said:
We believe the stock looks reasonable value on an FY25 PE ratio of c.20x when all of the comps in the S&P/ASX 20 trade on >20x. We also believe the forecast fully franked yield of 4.8% is attractive when CBA's forecast yield is now <4%. The yield is comparable, however, to the other banks but Telstra's dividend is expected to grow whereas the banks are not so much.
Speaking of which, Bell Potter is forecasting fully franked dividends of 19 cents per share in FY 2025 and then 20 cents per share in FY 2026. Based on its current share price of $3.96, this will mean yields of 4.8% and 5.1%, respectively.
