There are plenty of quality ASX dividend stocks to choose from on the Australian share market.
But which ones could be buys in November?
Two that have been tipped as top options by analysts are listed below. Here's why they could be great picks:
QBE Insurance Group Ltd (ASX: QBE)
The team at Goldman Sachs is feeling very positive about this insurance giant and sees it as an ASX dividend stock to buy.
There are a number of reasons why the broker thinks investors should be buying QBE's shares. This includes positive underlying trends and its improving performance in North America. It said:
QBE is a global commercial insurer with three main geographical operations across Australia Pacific, International (encompassing Europe) and North America. We are Buy-rated on QBE because 1) QBE underlying trends look very positive 2) QBE's achieved rate increases continue to be ahead of loss cost inflation and rate adequate. 3) North America on a pathway to improved profitability. 4) Valuation not demanding. 5) Strong ROE.
As for dividends, Goldman is forecasting dividends per share of 54 US cents (82 Australian cents) in FY 2024 and 57 US cents (87 Australian cents) in FY 2025. Based on the current QBE share price of $17.21, this equates to dividend yields of 4.8% and 5.1%, respectively.
Another positive is that the broker sees plenty of upside for investors. It has a buy rating and $20.00 price target on its shares.
Universal Store Holdings Ltd (ASX: UNI)
A second ASX dividend stock that could be a buy this month is Universal Store. It is the youth fashion retailer behind the Universal Store, Perfect Stranger, and Thrills brands.
Morgans continues to feel bullish about the company. Particularly after its strong start to FY 2025. This week the broker said:
At its AGM, UNI provided a trading update for the first 17 weeks of FY25 with total direct to consumer (DTC) sales up by an impressive 19.3% on the pcp. LFL sales in Universal Store and Perfect Stranger accelerated in the last 10 weeks from the first 7 weeks, whilst sales moderated in CTC THRILLS DTC business and wholesale demand (ex-Universal Store) remains volatile.
Gross margins have been well managed, in our view, and improvements made in 2H24 have continued into FY25 driven by mix (increased private label penetration). Costs as a percentage of sales have increased YTD yoy which is due to investment in headcount as well as capability for implementation of new ERP and POS system. We have made modest increases to our earnings forecasts up 2% in FY25 and 3% in FY26 respectively.
In respect to income, Morgans is forecasting fully franked dividends of 34 cents per share in FY 2025 and then 38 cents per share in FY 2026. Based on the current Universal Store share price of $7.88, this equates to dividend yields of 4.3% and 4.8%, respectively.
Morgans has an add rating and $8.75 price target on its shares.
