There are lots of ASX dividend shares for income investors to choose from on the local market.
Two that could be among the best options right now according to analysts are listed below. Here's what they are saying about them:
Aspen Group Limited (ASX: APZ)
Bell Potter thinks that Aspen Group could be a great ASX dividend share to buy this month. It is a leading provider of quality affordable accommodation across residential, land lease, and holiday park communities.
It currently has a buy rating and $2.40 price target on its shares.
There are a number of reasons why the broker is bullish. This includes its strong track record and high levels of inside ownership. Bell Potter explains:
APZ co-CEO's hold a large combined stake in the business (c.8%), the company has delivered 20% EPS growth last 5 years, and based on guidance (notwithstanding 11% higher SOI) is expecting to grow 9% in FY25. Still, the valuation is undemanding (7% discount to NTA; 13.5x 1yr forward PE vs. 15.1x sector average) and we think an improving residential macro back drop will only further boost APZ as it works towards ASX300 inclusion in time.
Bell Potter expects this to underpin dividends per share of 9.5 cents in FY 2025 and then 10.3 cents in FY 2026. Based on the current Aspen share price of $2.13, this will mean dividend yields of 4.45% and 4.8%, respectively.
HomeCo Daily Needs REIT (ASX: HDN)
Over at Morgans, its analysts have named HomeCo Daily Needs as an ASX dividend share to buy.
It is a property company with a focus on neighbourhood retail and large format retail assets. Its largest tenants are currently the biggest names in Australian retail – Coles Group Ltd (ASX: COL), Wesfarmers Ltd (ASX: WES), and Woolworths Group Ltd (ASX: WOW).
Morgans has an add rating and $1.36 price target on its shares.
It likes HomeCo Daily Needs because it believes it is positioned for growth over the long term thanks to favourable consumer trends and its development pipeline. The broker explains:
The portfolio has resilient cashflows and continues to be a beneficiary of accelerating click & collect trends. +80% of tenants are national and ~75% of tenants offer click & collect reinforcing the importance of assets being able to support 'last mile logistics'. Sites are also in strategic locations with strong population growth (+80% metro). HDN offers an attractive distribution yield and the development pipeline provides growth opportunities.
Morgans expects this to support the payment of dividends per share of 8.5 cents in FY 2025 and then 8.7 cents in FY 2026. Based on the current HomeCo Daily Needs share price of $1.29, this will mean dividend yields of 6.6% and 6.75%, respectively.
