If you're busy constructing a retirement portfolio, it could be worth looking at these ASX dividend shares listed below.
They have been named as buys and tipped to provide investors with a nice source of passive income. Here's what you need to know about them:
Eagers Automotive Ltd (ASX: APE)
Analysts at Morgans think that Eagers Automotive could be a great ASX dividend share to buy. It is the leading automotive retail group in the Australia and New Zealand region.
It has been around for over a century and listed on the Australian stock exchange for almost 70 years. And during this time, it has paid a dividend every single year. This makes Eagers Automotive a reliable source of passive income.
Morgans expects this trend to continue and is forecasting some big dividend yields in the near term. It 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 $10.59, this represents dividend yields of 6.85% and 7%, respectively.
Morgans has a buy rating and $14.35 price target on its shares.
Endeavour Group Ltd (ASX: EDV)
Another ASX dividend share that could be a good option for retirees is Endeavour Group. It is the largest player in the Australian alcohol retail market through brands such as Dan Murphy's and BWS. It also owns a network of over 350 pubs across the country.
Goldman Sachs likes Endeavour Group due to its leadership position in a defensive market. It believes this positions the company to pay fully franked dividends of 21 cents per share in FY 2024 and then 22 cents per share in FY 2025. Based on the current Endeavour share price of $5.46, this will mean dividend yields of 3.85% and 4%, respectively.
The broker currently has a buy rating and $6.50 price target on its shares.
Rural Funds Group (ASX: RFF)
A final ASX dividend share that could be a good option for retirees is Rural Funds. It is the owner of a portfolio of high-quality agricultural assets.
These properties are predominantly on long term leases with rental increases built in. This gives the company great visibility on its future earnings.
Bell Potter is positive on the company and continues to believe that its shares are undervalued at current level. It notes that "RFF trades at a historical high discount to its market NAV per unit."
In addition, the broker is expecting the company to pay dividends per share of 11.7 cents in both FY 2024 and FY 2025. Based on the current Rural Funds share price of $2.08, this will mean yields of 5.6% for investors.
Bell Potter has a buy rating and $2.40 price target on its shares.
