Are you searching 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.
They have recently been named as buys by analysts and tipped to offer attractive dividend yields. Here's what you need to know about them:
BHP Group Ltd (ASX: BHP)
Goldman Sachs remains very positive on BHP. It is of course one of the world's largest miners with operations across a range of commodities. This includes iron ore, potash, nickel, and copper.
Copper is the commodity that is getting analysts the most excited. For example, Goldman Sachs highlights that the base metal is going to contribute significantly more earnings in the coming years. It said:
We remain bullish on copper due to ongoing supply side challenges and increasing demand and expect BHP's copper EBITDA to increase by ~US$3bn to ~US$10bn by FY26E (~45% of group EBITDA). Under our base case, copper EBITDA is expected to reach US$14bn by FY35E and ~US$19bn with all copper growth, at GSe long run copper of US$4.44/lb (real $, from 2028).
The broker expects this to underpin fully franked dividends of 99 US cents per share in FY 2025 and US$1.08 per share in FY 2026. Based on the current BHP share price of $40.59, this equates to dividend yields of 3.8% and 4.1%, respectively.
Cedar Woods Properties Limited (ASX: CWP)
Another ASX dividend share for income investors to look at is Cedar Woods.
It is one of Australia's leading property companies with a portfolio diversified by geography, price point, and product type.
The team at Morgans is positive on the company. Its analysts were pleased with Cedar Woods' performance in FY 2024 and believe there's more to come this financial year thanks to 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 $5.58, this equates to 4.8% and 5.7% dividend yields, respectively.
The broker has an add rating and $6.50 price target on its shares.
