Income investors on the lookout for big returns might want to consider the two ASX dividend shares named below.
Not only are analysts tipping them to rise strongly from current levels, but also are forecasting attractive dividend yields from them.
Combined, they could offer total returns of approximately 20% over the next 12 months. Here's what you need to know:
Cedar Woods Properties Limited (ASX: CWP)
Analysts at Morgans are positive on Cedar Woods and believe it could be an ASX dividend share to buy.
It is one of Australia's leading property developers with a portfolio that is diversified by geography, price point, and product type.
Morgans has an add rating and $6.50 price target on its shares. This suggests that upside of 15% is possible from current levels.
After a strong performance in FY 2024, the broker is expecting more of the same this year. 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.
The broker expects this to support dividends per share of 27 cents in FY 2025 and then 31.7 cents in FY 2026. Based on its current share price of $5.63, this equates to 4.8% and 5.6% dividend yields, respectively.
Super Retail Group Ltd (ASX: SUL)
Analysts at Goldman Sachs remain very positive on Super Retail following its trading update last week.
It is the company behind popular brands BCF, Macpac, Supercheap Auto, and Rebel.
Last week, Goldman retained its buy rating with a slightly trimmed price target of $17.60. This implies potential upside of 15% for investors over the next 12 months. The broker said:
We retain our Buy rating on SUL on 1) activation of 11.5mn members (77% sales) driving targeted marketing and increased member ARPU 2) Robust store growth driving sales including investment in enhanced rCX (rebel) and superstore (BCF) formats 3) Capital mgmt potential with GSe FY25 Net cash ~A$174m. SUL is trading at a FY25E P/E of 15x vs LT avg of 13x, against 4% FY24-27e EPS CAGR.
In respect to dividends, the broker expects Super Retail to pay fully franked dividends per share of 67 cents in FY 2025 and then 73 cents in FY 2026. Based on its current share price of $15.26, this will mean yields of 4.4% and 4.8%, respectively.
