Income investors certainly are a lucky bunch! That's because the Australian share market is filled to the brim with dividend-paying shares.
But which ones could be buys for them right now?
Let's look at two ASX dividend stocks that have been given the thumbs up by analysts and are being tipped to provide big dividend yields. They are as follows:
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Dexus Convenience Retail REIT (ASX: DXC)
The Dexus Convenience Retail REIT could be a great ASX dividend stock to buy right now.
That's the view of analysts at Bell Potter, which are feeling very positive about the service station and convenience retail asset-focused property company.
The broker feels that the market is undervaluing its shares. Particularly given its very large dividend yield. It said:
DXC is one of our preferred ways to play externally managed REITs given its high distribution yield (+7%), but with valuation confidence, yet the stock trading at a c.21% discount to NTA despite c.10% of the portfolio having been recycling in the last 12m, and price discovery only as recent as this month for the majority, we see a low-risk double digit total return opportunity where other REITs are likely to still be cycling either cap rate expansion and/or earnings downside. With strong price discovery, and operator reinvestment into the sector we see a positive outlook ahead for DXC.
In respect to income, the broker is forecasting dividends per share of 20.6 cents in FY 2025 and then 21 cents in FY 2026. Based on its current share price of $2.76, this implies dividend yields of 7.5% and 7.6%, respectively.
Bell Potter has a buy rating and $3.10 price target on its shares.
Woodside Energy Group Ltd (ASX: WDS)
Over at Morgans, its analysts think that Woodside could be an ASX dividend stock to buy.
Its analysts think that recent share price weakness has created an attractive buying opportunity for investors. It said:
A tier 1 upstream oil and gas operator with high-quality earnings that we see as likely to continue pursuing an opportunistic acquisition strategy. WDS's share price has been under pressure in recent months from a combination of oil price volatility and approval issues at Scarborough, its key offshore growth project. With both of those factors now having moderated, with the pullback in oil prices moderating and work at Scarborough back underway, we see now as a good time to add to positions. Increasing our conviction in our call is the progress WDS is making through the current capex phase, while maintaining a healthy balance sheet and healthy dividend profile.
In addition, the broker is expecting some great yields in the coming years. It is forecasting fully franked dividends of $1.28 per share in FY 2024 and $1.54 per share in FY 2025. Based on its current share price of $26.05 this will mean yields of 4.9% and then 5.9%.
Morgans currently has an add rating and $35.00 price target on Woodside's shares.
