The Australian share market traditionally offers investors an attractive 4% dividend yield.
But investors don't have to settle for that. Not when there are high-yield ASX dividend stocks out there offering more.
Let's take a look at two dividend stocks with generous yields that analysts at Morgans are tipping as buys:
Cedar Woods Properties Limited (ASX: CWP)
The first ASX dividend stock for retirees to consider buying is Cedar Woods.
It is one of Australia's leading property companies with a portfolio that is diversified by geography, price point, and product type.
Morgans thinks investors should be buying its shares now. The broker believes that double-digit profit growth is coming in FY 2025, which is expected to underpin a great dividend yield. This is being supported by positive operating conditions in key states. It explains:
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.
In respect to that all-important income, 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 $5.50, this equates to 4.9% and 5.75% dividend yields, respectively.
The broker has an add rating and $6.50 price target on its shares.
HomeCo Daily Needs REIT (ASX: HDN)
Another ASX dividend stock for retirees to look at buying in January is HomeCo Daily Needs.
It is an Australian company with a focus on convenience-based assets across the target sub-sectors of neighbourhood retail, large format retail and health and services.
Its properties are in such demand that the company currently boasts an occupancy rate of 99%. And with tenants including Australia's largest retailers such as Coles Group Ltd (ASX: COL), Wesfarmers Ltd (ASX: WES), and Woolworths Group Ltd (ASX: WOW), this demand looks unlikely to ease any time soon.
Morgans is also a big fan of the company and believes it is positioned for growth. It commented:
The portfolio has resilient cashflows and continues to be a beneficiary of accelerating click & collect trends. +80% of tenants are national and ~75% of tenants offer click & collect reinforcing the importance of assets being able to support 'last mile logistics'. Sites are also in strategic locations with strong population growth (+80% metro). HDN offers an attractive distribution yield and the development pipeline provides growth opportunities.
As for dividends, the broker is forecasting dividends per share of 8.5 cents in FY 2025 and then 8.7 cents in FY 2026. Based on the current HomeCo Daily Needs share price of $1.15, this will mean dividend yields of 7.4% and 7.55%, respectively.
Morgans currently has an add rating and $1.36 price target on its shares.
