Income investors certainly have a lot of choice on the Australian share market. So much so, it can be hard to decide which ASX dividend stocks to buy over others.
To narrow things down, let's look at a couple of buy-rated dividend stocks that are being tipped to provide investors with good dividend yields in the near term. Here's what analysts are saying about these stocks this month:
Smartgroup Corporation Ltd (ASX: SIQ)
The first ASX dividend stock that could be a buy for income investors is Smartgroup.
It is a simplified employee management services provider offering salary packaging, fleet management, and a range of other services to organisations across Australia.
Bell Potter is bullish on the company and believes its shares are attractively priced. Particularly given its defensive earnings and favourable tailwinds from electric vehicle adoption. It said:
Smartgroup is an industry-leading provider of employee benefits, end-to-end fleet management and software solutions with over 400,000 salary packages and 64,000 novated leases under management. SIQ looks well priced given a fwd P/E of ~14.5x, a defensive client base, earnings tailwinds from the Electric Car Discount Bill (exempts low or zero emission vehicles from Fringe Benefits Tax), an ROE of ~30% and a strong balance sheet.
As for income, the broker is forecasting fully franked dividends of 53.3 cents in FY 2024 and then 59.7 cents in FY 2025. Based on its current share price of $8.06, this means big potential dividend yields of 6.6% and 7.4%, respectively.
Bell Potter currently has a buy rating and $10.00 price target on its shares.
National Storage REIT (ASX: NSR)
Another ASX dividend stock that is being tipped as a buy for income investors this month is National Storage.
It is the largest self-storage provider in Australia and New Zealand, with over 250 locations providing tailored storage solutions to in excess of 97,000 residential and commercial customers.
National Storage was on form in FY 2024, delivering an 8.7% increase in underlying earnings to $154.2 million. This allowed the company to pay an 11 cents per share dividend.
The team at Citi is feeling positive about the company and believes it is well-positioned to grow its dividend. The broker is forecasting dividends per share of 11.3 cents in FY 2025 and then 11.9 cents in FY 2026. Based on its current share price of $2.52, equates to dividend yields of 4.5% and 4.7%, respectively, for income investors.
Citi currently has a buy rating and $2.70 price target on its shares.
