There are lots of ASX dividend stocks to choose from on the Australian share market, but which ones could be buys today?
Two shares that were recently picked out as buys by analysts are listed below. Here's what they are saying about them:
Dexus Industria REIT (ASX: DXI)
Morgans thinks that Dexus Industria could be a top ASX dividend stock to buy. It is a real estate investment trust with a focus on industrial warehouses.
Morgans currently has an add rating and $3.16 price target on its shares.
Its analysts like the company due to their belief that it is well-positioned to benefit from strong demand for industrial property. They explain:
The portfolio is valued at $1.6bn across +90 properties with 89% of the portfolio weighted towards industrial assets (WACR 5.38%). The portfolio's WALE is around 6 years and occupancy 97.5%. Across the portfolio 50% of leases are linked to CPI with the balance on fixed increases between 3-3.5%. While we expect cap rates to expand further in the near term, DXI's industrial portfolio remains robust with the outlook positive for rental growth. The development pipeline also provides near and medium-term upside potential and post asset sales there is balance sheet capacity to execute.
In respect to dividends, the broker is forecasting dividends per share of 16.4 cents in FY 2025 and then 16.8 cents in FY 2026. Based on its current share price of $2.82, this will mean dividend yields of 5.8% and 6%, respectively.
South32 Ltd (ASX: S32)
Over at Goldman Sachs, its analysts think that South32 could be a great option for income investors.
They believe the diversified miner is an ASX dividend stock to buy and have put a buy rating and $3.70 price target on its shares.
The broker likes the miner due to its exposure to copper, aluminium, zinc, and met coal. It explains:
GS are bullish copper, aluminium, zinc and met coal (~65% of S32 NTM EBITDA) in CY24. Together with lower capex, working cap unwind and higher production, we forecast ~US$550mn of FCF in the June H. On our forecasts, S32 is trading on a FCF yield of 9% in FY25 (10% at spot). […] Attractive valuation: although trading at ~1xNAV (A$3.77/sh), on near term multiples S32 is trading on an attractive NTM EV/EBITDA multiple of ~4.5x vs. the global sector average of 5.7x.
As for income, Goldman is forecasting fully franked dividends per share of 10.3 US cents in FY 2025 and then 16.2 US cents in FY 2026. Based on its latest share price of $3.04 and current exchange rates, this will mean yields of 5%, and 7.9%, respectively.
