If you are on the lookout for a big income boost, then the ASX dividend stocks in this article could be just the ticket.
They are rated as buys by analysts and tipped to provide huge dividend yields in the near term. Here's what you need to know about them:
Healthco Healthcare and Wellness REIT (ASX: HCW)
The first high yield ASX dividend stock that is being tipped as a buy for income investors is the Healthco Healthcare and Wellness REIT.
It is a real estate investment trust with a focus on healthcare and wellness assets. This includes hospitals, aged care, childcare, government, life sciences and research, and primary care and wellness properties.
Bell Potter is positive and recently commented:
As we highlighted in our recent detailed note, at a prevailing 27% discount to NTA, HCW's share price is factoring a poor outcome vis-a-vis HSO which is notwithstanding the recut terms upon entry of the deal in March '23 and cross default rights which sit across all 11 HSO-tenanted properties.
With +5% earnings growth expected for FY25, we see value in HCW at current levels with the buyback putting a floor under the share price and HCW continuing to deliver from a property perspective. At a +7% DPS yield and meaningful discount to NTA, HCW screens attractively on a sector-relative basis.
As mentioned above, big yields are expected from this ASX dividend stock. Bell Potter is forecasting dividends per share of 8.4 cents in FY 2025 and then 8.7 cents FY 2026. Based on the current Healthco Healthcare and Wellness REIT unit price of $1.10, this will mean yields of 7.6% and 7.9%, respectively.
Bell Potter currently has a buy rating and $1.50 price target on its shares.
IPH Ltd (ASX: IPH)
Another high-yield ASX dividend stock that could be a buy is intellectual property (IP) services company IPH.
Goldman Sachs believes that the company is well-placed to deliver consistent defensive earnings and organic growth. It explains:
In our view, IPH is well-placed to deliver consistent and defensive earnings with modest overall organic growth. We expect Asia to be the fastest growing region for IPH, as the company leverages its strong market share in Singapore to grow in other Asian markets. We expect relatively stable earnings in the A/NZ business and see market share stabilising at c.30-35%.
We expect the next factor to watch for will be further consolidation of the Canadian market and/or an acquisition in a new secondary market (e.g. South Africa, South America, or Eastern Europe). Trading on a material NTM P/E discount to its historical average multiple, and with defensive earnings, strong cash flow and M&A optionality, we believe risk-reward is skewed to the upside; hence, we are Buy rated.
As for income, Goldman expects fully franked dividends of 36 cents per share in FY 2025 and then 39 cents per share in FY 2026. Based on the current IPH share price of $5.08, this represents yields of 7.1% and 7.7%, respectively.
Goldman currently has a buy rating and $7.50 price target on its shares.
