If you are looking for an income boost with some ASX dividend stocks, then the three listed below could be worth a closer look.
All three of these dividend stocks are expected to provide investors with good yields in the near term and could also rise meaningfully from current levels.
Here's what analysts are saying about them:
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BHP Group Ltd (ASX: BHP)
Goldman Sachs is positive on BHP and sees it as an ASX dividend stock to buy. It is of course one of the world's largest miners with operations across a range of commodities. This includes iron ore, potash, nickel, coal, and copper.
It is copper that is getting Goldman Sachs the most excited. The broker highlights that it "remain[s] 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)."
It expects this to underpin fully franked dividends of 99 US cents (~A$1.59) per share in FY 2025 and US$1.08 (~A$1.74) in FY 2026. Based on BHP's current share price of $39.77, this implies dividend yields of 4% and 4.4%, respectively.
Goldman has a buy rating and $47.40 price target on its shares.
Endeavour Group Ltd (ASX: EDV)
Another ASX dividend stock that Goldman Sachs rates as a buy is Endeavour Group. It owns Australia's largest retail drinks network under the Dan Murphy's and BWS brands, as well as the country's largest portfolio of licensed hotels.
Goldman's analysts like the company due to their "continued belief in a high quality retailer gaining share amid a category down-cycle with a resilient growth option in Hotels." The broker also notes that the "company is trading at FY25 P/E of 17x vs historical average of 22x."
As for income, its analysts are forecasting fully franked dividends of 20 cents per share in FY 2025 and then 22 cents per share in FY 2026. Based on the current Endeavour share price of $4.23, this will mean dividend yields of 4.7% and 5.2%, respectively.
Goldman currently has a buy rating and $5.50 price target on its shares.
Westpac Banking Corp (ASX: WBC)
Finally, most brokers believe that Australia's oldest bank, Westpac, is overvalued at current levels. But one leading broker doesn't agree and sees it as an ASX dividend stock to buy right now.
That broker is UBS. It is positive on the company and believes that it will deliver a result ahead of expectations in FY 2025. Despite this, it highlights that Westpac's shares are trading at a sizeable discount to peers.
As for dividends, the broker expects fully franked dividends yields a touch under 5% in both FY 2025 and FY 2026 at current prices.
UBS has a buy rating and lofty $37.00 price target on its shares.
