Income investors on the hunt for some ASX dividend shares to buy in January might want to check out the two names below.
They have been named as buys by brokers and tipped to provide attractive yields in the near term. Let's see why they are bullish on them:
Telstra Group Ltd (ASX: TLS)
The team at Bell Potter thinks that Telstra could be an ASX dividend share to buy this month.
It is Australia's leading telecommunications and information services company with 22.5 million retail mobile services and 3.4 million retail bundle and data services.
Bell Potter believes that Telstra's shares are good value at current levels, especially given its attractive dividend yield. It explains:
We believe the stock looks reasonable value on an FY25 PE ratio of c.20x when all of the comps in the S&P/ASX 20 trade on >20x. We also believe the forecast fully franked yield of 4.8% [now 4.7%] is attractive when CBA's forecast yield is now <4%. The yield is comparable, however, to the other banks but Telstra's dividend is expected to grow whereas the banks are not so much.
As for income, Bell Potter is forecasting fully franked dividends of 19 cents per share in FY 2025 and then 20 cents per share in FY 2026. Based on the current Telstra share price of $4.03, this represents dividend yields of 4.7% and 5%, respectively.
Bell Potter currently has a buy rating and $4.35 price target on Telstra's shares.
Endeavour Group Ltd (ASX: EDV)
Another ASX dividend share that could be a top buy for income investors in January is Endeavour Group.
It is the owner of Australia's largest retail drinks network under the Dan Murphy's and BWS brands. Endeavour Group also runs the country's largest portfolio of licensed hotels with 344 venues across Australia.
Goldman Sachs is a big fan of the company and believes that recent weakness has created a buying opportunity for investors. It said:
We reiterate Buy on our continued believe in a high quality retailer gaining share amid a category down-cycle with a resilient growth option in Hotels. Company is trading at FY25 P/E of 17x vs historical average of 22x and WOW 22x, COL 21x. Next catalyst: post Xmas trading at 1H25 results.
As for dividends, the broker is forecasting fully franked dividends of 20 cents per share in FY 2025 and 22 cents per share in FY 2026. At the current share price of $4.19, this equates to dividend yields of 4.8% and 5.25%, respectively.
Goldman currently has a buy rating and $5.50 price target on its shares.
