Are you on the lookout for new additions to your income portfolio?
If you are, then it could pay to listen to what analysts are saying about the ASX dividend shares in this article.
These shares have been named as buys and tipped to deliver great returns for investors over the next 12 months. Here's what you need to know about them:
Image source: Getty Images
Cedar Woods Properties Limited (ASX: CWP)
The first ASX dividend share that analysts rate as a buy is Cedar Woods.
It is one of Australia's leading property companies with a portfolio diversified by geography, price point and product type.
Morgans was impressed with Cedar Woods' performance in FY 2024 and believes that another strong result is coming in current financial year. Especially considering the positive operating conditions the company is experiencing in key markets. 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.
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 $5.85, this equates to 4.6% and 5.4% dividend yields, respectively.
The broker has an add rating and $6.50 price target on its shares.
Nickel Industries Ltd (ASX: NIC)
Another ASX dividend share that could be a buy is Nickel Industries.
It is a low-cost producer of nickel pig iron (NPI), which is a key ingredient in stainless steel production.
The team at Bell Potter believes the company's shares are being undervalued by the market. Particularly given its positive growth outlook and attractive dividend yield. It said:
NIC is the only pure-play producer of scale on the ASX providing exposure to the nickel price, with earnings diversified across Type 1 and Type 2 nickel. Its aggressive growth profile is fully funded, it is currently moving through the peak CAPEX phase which we forecast to drive strong earnings growth in CY25 and CY26. NIC has long-life assets with demonstrated ability to make money through the nickel price cycle while also sustaining a supportive (unfranked) dividend which we forecast to grow. At these levels it trades on undemanding valuation multiples.
As for income, the broker is forecasting Nickel Industries to pay 5 cents per share dividends in FY 2024 and FY 2025. Based on its current share price of 93 cents, this would mean dividend yields of 5.4% in both years.
Bell Potter has a buy rating and $1.43 price target on its shares.
