There are lots of ASX dividends stocks to choose from on the local share market.
But two that could be standout picks according to brokers are listed below. Here's why they are feeling bullish about them:
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Healthco Healthcare and Wellness REIT (ASX: HCW)
The first ASX dividend stock to check out is the HealthCo Healthcare & Wellness REIT. It is a real estate investment trust with a mandate to invest in hospitals, aged care, childcare, government, life sciences, and primary care and wellness properties.
The team at Bell Potter is feeling very positive about the company. The broker highlights that the company has a significant development pipeline and huge addressable market to grow into in the future. It explains:
HCW has underperformed the REIT sector last 3 months (-10% vs. +22% XPJ) following bond yield reversion and is attractively priced at 20% discount to NTA (but only REIT to record flat to positive valuation movement at 1H24) with double digit 3 year EPS CAGR given high relative sector debt hedging and ability to grow its $1bn development pipeline via attractive YoC spread to marginal cost of debt. Longer term, HCW has significant scope for growth with an estimated $218 billion addressable market where an ageing and growing population should underpin long-term sector demand.
In respect to dividends, the broker is forecasting dividends per share of 8.4 cents in FY 2025 and then 8.7 cents in FY 2026. Based on the current Healthco Healthcare and Wellness REIT unit price of $1.20, this will mean dividend yields of 7% and 7.25%, respectively.
Bell Potter has a buy rating and $1.50 price target on its shares.
Origin Energy Ltd (ASX: ORG)
Over at Goldman Sachs, its analysts are tipping Origin Energy as an ASX dividend stock to buy. It is of course one of Australia's largest energy companies.
Its analysts are feeling positive about Origin due to the diversity of its earnings and its robust free cash flow generation. They commented:
We are Buy rated on ORG considering: APLNG earnings diversification to support strong FCF & returns: 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. Growth opportunity through Octopus & Kraken: Octopus' valuation has already increased 600% since ORG's initial investment in 2020, which we expect could continue to grow over 20% in FY25 as contracted Kraken accounts growth drives 30% EBITDA growth.
As for income, Goldman is forecasting fully franked dividends per share of 58 cents in FY 2025 and then 54 cents in FY 2026. Based on its current share price of $10.07, this would mean dividend yields of 5.75% and 5.35%, respectively.
The broker has a buy rating and $10.75 price target on its shares.
