If you have room in your income portfolio for a new addition or two, then check out the ASX dividend stocks listed below.
They have recently been named as cheap buys by brokers and tipped to provide good yields. Here's what you need to know:
Elders Ltd (ASX: ELD)
Bell Potter thinks that agribusiness company Elders could be an ASX dividend stock to buy now.
The broker was pleased with the announcement of a new acquisition and believes the market is underestimating its synergies. Outside this, it feels that Elders' shares are trading at a discount and are good value now. It said:
Our Buy rating is unchanged. The acquisition of delta looks a relatively low-risk stepout with upside to the synergy target based on the 15% ROIC target (i.e ~$70m EBIT vs. 3yr target of ~$55m) largely through increased backward integration in crop protection. Trading at ~7.4x PF25e EBITDA, ELD trades at a reasonable discount to its through-the-cycle EBITDA multiple of 8.5x.
Bell Potter expects this to underpin the payment of fully franked dividends of 38 cents per share in FY 2025 and then 43 cents per share in FY 2026. Based on the current Elders share price of $7.58, this will mean dividend yields of 5% and 5.7%, respectively.
It has a buy rating and $9.45 price target on its shares.
Super Retail Group Ltd (ASX: SUL)
Goldman Sachs thinks that Super Retail could be an ASX dividend stock to buy right now. It is the owner of popular store brands BCF, Supercheap Auto, Macpac, and Rebel.
Goldman likes the company due to its belief that it has both a space and sales productivity lever to pull. It also highlights its attractive valuation. The broker explains:
While we believe that the nature of SUL's categories in Rebel Sports, Camping and Outdoor Wear is more discretionary compared to Electronics, Tech and Home, SUL is one of the few retailers in Australia that has both a space and sales productivity lever that we expect the company to be able to pull. It is trading on 14x FY25 P/E vs 4% FY24-27e EPS CAGR, a better value within our Discretionary Retail coverage vs. peers, in our opinion.
Its analysts expect Super Retail to be in a position to pay fully franked dividends per share of 67 cents in FY 2025 and then 73 cents in FY 2026. Based on its current share price of $14.89, this will mean yields of 4.5% and 4.9%, respectively.
The broker has a buy rating and $17.60 price target on its shares.
