Income investors that are on the lookout for new portfolio additions might want to check out the ASX income stocks in this article.
That's because analysts are tipping them as buys and expect a combination of decent yields and meaningful upside in the near term. Let's find out what they are predicting for them now:
BHP Group Ltd (ASX: BHP)
The team at Goldman Sachs thinks that BHP could be a good ASX income share to buy right now.
The broker likes the mining giant due to its growing exposure to copper, which it is bullish on due to ongoing supply side challenges and increasing demand. In fact, it notes that BHP is poised to increase its copper EBITDA from US$8.6 billion to US$11.9 billion in FY 2025.
Goldman expects this to support the payment of fully franked dividends per share of 99 US cents (A$1.51) n FY 2025 and then US$1.07 (A$1.63) in FY 2026. Based on its current share price of $42.78, this equates to dividend yields of 3.5% and 3.8%, respectively.
The broker has a buy rating and $47.30 price target on its shares.
Centuria Industrial REIT (ASX: CIP)
Another ASX income stock that is being tipped as a buy is Centuria Industrial. It is Australia's largest domestic pure play industrial property investment company.
UBS is positive on the company and its outlook due to the insatiable demand for industrial property.
As for income, the broker is forecasting Centuria Industrial to pay dividends per share of 16 cents in FY 2025 and then 17 cents in FY 2026. Based on the current Centuria Industrial share price of $3.04, this represents dividend yields of 5.25% and 5.6%, respectively.
UBS has a buy rating and $3.80 price target on its shares.
Universal Store Holdings Ltd (ASX: UNI)
Finally, the team at Bell Potter thinks that Universal Store could be an ASX income share to buy. It is the youth fashion retailer behind the Universal Store, Perfect Stranger, and Thrills brands.
The broker is bullish on the company due to "the store roll-out & brand growth strategy, margin expansion via private label product penetration (currently ~46%) and strong earnings trajectory."
The broker expects this to underpin fully franked dividends per share of 31.4 cents in FY 2025 and then 36.8 cents in FY 2026. Based on the current Universal Store share price of $7.80, this will mean yields of 4% and 4.7%, respectively.
Bell Potter has a buy rating and $8.85 price target on its shares.
