Fortunately for income investors is that there are plenty of ASX dividend stocks to choose from on the local market.
But which ones could be buys this month?
Two that analysts think could be top options are listed below. Here's what they are expecting from them:
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Cedar Woods Properties Limited (ASX: CWP)
Morgans thinks that Cedar Woods could be an ASX dividend share to buy. It currently has an add rating and $6.50 price target on the property developer's shares.
The broker was pleased with the company's performance in FY 2024 and believes it is well-placed to build on this in FY 2025 due to favourable operating conditions. It said:
CWP announced FY24 NPAT of $40.5m, up 28% (vs pcp) and above both the guidance range of $36m – $39m and our prior forecast of $37.8m. The key contributor was the sale of the William Land Shopping Centre, with lot revenue and gross profit broadly stable. Looking forward, the signs are positive, with guidance for +10% NPAT growth in FY25, supported by favorable operating conditions in most key states.
As for dividends, Morgans is forecasting dividends per share of 27 cents in FY 2025 and then 31.7 cents in FY 2026. Based on its current share price of $5.71, this equates to 4.7% and 5.55% dividend yields, respectively.
SRG Global Ltd (ASX: SRG)
Another ASX dividend stock that could be a good option for income investors this month is SRG Global. It is a diversified industrial services group that provides multidisciplinary construction, maintenance, production drilling and geotechnical services.
The team at Bell Potter rates the company highly. This is because it believes SRG Global will be a beneficiary of Government-stimulated construction activity and accelerating growth in iron ore and gold production volumes over the next five years. It explains:
SRG's short-to-medium term outlook is reinforced by Government-stimulated construction activity in the Infrastructure and Non-Residential sectors and increased development and sustaining capital expenditures in the Resources industry. The resulting expansion in infrastructure bases across these sectors will likely support increased demand for asset care and maintenance in the medium to long-term. We anticipate Mining Services will be a beneficiary of accelerating growth in iron ore and gold production volumes over the next five years.
In respect to income, the broker is forecasting fully franked dividends of 5 cents in FY 2025 and then 6 cents in FY 2026. Based on its current share price of $1.05, this will mean dividend yields of 4.75% and 5.7%, respectively.
Bell Potter has a buy rating and $1.40 price target on its shares.
