If you are looking to boost your income with some ASX dividend stocks, then two listed below could be worth a closer look.
Both of these dividend stocks are expected to provide income investors with attractive dividend yields in the near term and could rise nicely from current levels.
Here's what analysts are saying about them:
Coles Group Ltd (ASX: COL)
The first ASX dividend stock for income investors to consider buying is Coles.
It is one of Australia's largest retailers, with a footprint of over 1,800 retail outlets across the country serving millions of customers every week.
This comprises more than 840 supermarkets and a large liquor store network operating through the Liquorland, First Choice Liquor Market, and Vintage Cellars brands.
Bell Potter is a fan of the company and thinks it would be a good option right now. This is because its analysts "continue to see COL as providing an attractive earnings growth profile through to FY27e on an underlying basis."
The broker expects this to underpin fully franked dividends of 68 cents per share in FY 2025 and then 78 cents per share in FY 2026. Based on the current Coles share price of $19.01, this equates to dividend yields of approximately 3.6% and 4.1%, respectively.
Bell Potter has a buy rating and $20.50 price target on its shares.
Nickel Industries Ltd (ASX: NIC)
For income investors that are not averse to investing in the resources sector, then Nickel Industries could be an ASX dividend stock to buy.
It is a low-cost producer of nickel pig iron (NPI), which is a key ingredient in stainless steel production.
Bell Potter is also very positive on Nickel Industries and believes its shares are being undervalued by the market. Particularly given its positive growth outlook and attractive dividend yield.
The broker highlights that 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."
It also notes that "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." In light of this, it feels that "it trades on undemanding valuation multiples."
In respect to 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 88 cents, this would mean dividend yields of 5.7% in both years.
Bell Potter has a buy rating and $1.43 price target on its shares.
