The Australian share market is blessed with countless income options. But which ASX dividend stocks could be buys this month?
Let's take a look at two that get the thumbs up from analysts right now. They are as follows:
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BHP Group Ltd (ASX: BHP)
Goldman Sachs thinks that BHP shares would be a good option for income investors. The broker sees a lot of value in the mining giant's shares following recent weakness and is expecting some attractive dividend yields in the near term.
In respect to its valuation, the broker has a buy rating and $48.80 price target on its shares. It recently said:
BHP is currently trading at ~6.0x NTM EBITDA (25-yr average EV/EBITDA of 6.6x), a slight premium to RIO on ~5.5x; and at 0.9xNAV vs RIO at 0.8xNAV. Over the last 10 years, BHP has traded at a ~0.5x premium to global mining peers. We believe this premium can be partly maintained due to ongoing superior margins and operating performance (particularly in Pilbara iron ore where BHP maintains superior FCF/t vs. peers).
As for its dividends, Goldman has pencilled in fully franked dividends per share of US$1.16 (A$1.74 in FY 2025 and then US$1.13 (A$1.70) in FY 2026. Based on its current share price of $38.66, this equates to dividend yields of 4.5% and 4.4%, respectively.
Accent Group Ltd (ASX: AX1)
As well as BHP shares, analysts remain positive on this leisure footwear retailer and see it as an ASX dividend stock to buy this month.
Morgans is a fan of the company and currently has an add rating and $2.40 price target on its shares. The broker was reasonably pleased with Accent's performance in FY 2024, particularly given tough trading conditions, and expects a nice rebound this year. It said:
AX1 achieved positive growth in sales in FY24, despite the challenging retail environment and a poor wholesale performance. Earnings were down yoy due to sales growth tracking below the rate of cost inflation (as well as material non-recurring costs relating to Glue), but this was in line with the guidance given in July. An improving retail and wholesale sales trajectory, moderating cost inflation and the elimination of some of the losses in Glue, will combine to see earnings recover in FY25.
In respect to income, its analysts are forecasting fully franked dividends per share of 14 cents in FY 2025 and then 15 cents in FY 2026. Based on its current share price of $2.30, this will mean generous dividend yields of 6.1% and 6.5%, respectively.
