Looking for income ideas? If you are, then check out the two buy-rated ASX dividend stocks listed below.
Let's see why analysts are bullish on these names:
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IPH Ltd (ASX: IPH)
Goldman Sachs has named IPH as an ASX dividend stock to buy. It is an intellectual property (IP) services company with a network of member firms working throughout 10 IP jurisdictions.
IPH's businesses include leading IP firms AJ Park, Griffith Hack, Pizzeys, ROBIC, Smart & Biggar, and Spruson & Ferguson. The company also owns the Applied Marks business, an online automated trade mark application platform.
Goldman likes the company due to its defensive earnings and organic growth potential. It explains:
In our view, IPH is well-placed to deliver consistent and defensive earnings with modest overall organic growth.
We expect Asia to be the fastest growing region for IPH, as the company leverages its strong market share in Singapore to grow in other Asian markets. We expect relatively stable earnings in the A/NZ business and see market share stabilising at c.30-35%.
We expect the next factor to watch for will be further consolidation of the Canadian market and/or an acquisition in a new secondary market (e.g. South Africa, South America, or Eastern Europe). Trading on a material NTM P/E discount to its historical average multiple, and with defensive earnings, strong cash flow and M&A optionality, we believe risk-reward is skewed to the upside; hence, we are Buy rated.
As for dividends, the broker is forecasting partially franked dividends of 36 cents per share in FY 2025 and then 39 cents per share in FY 2026. Based on the current IPH share price of $4.97 this represents dividend yields of 7.2% and 7.8%, respectively.
Goldman has a buy rating and a $7.50 price target on its shares.
Premier Investments Ltd (ASX: PMV)
Bell Potter thinks that Premier Investments could be an ASX dividend stock to buy this year.
It is the owner of the Peter Alexander and Smiggle brands, which the broker believes have long growth runways. And while it also owns brands such as Just Jeans and Dotti, these and others are in the process of being divested.
Commenting on the company and its plans, the broker said:
In addition to Premier Investment's market share of ~6% in the apparel vertical and ~15% in the stationary space in Australia, the Smiggle brand is also a large player in the UK market.
As the Smiggle brand looks to grow its presence in the Middle East & Indonesia via a low-risk wholesale model and Peter Alexander into the UK, we think the two brands have a long runway ahead.
With the divestment of the non-core Apparel Brands to Myer (MYR) in an all-script deal expected to be completed in January 2025, we see PMV retaining the higher margin Smiggle and Peter Alexander earnings base post-demerger.
We view the highly profitable retail business with domestic:offshore exposure of 70:30 (BPe) growing at ~13% (BPe, FY26e), ~26% stake in Breville Group (BRG), together with property assets valued at cost and a strong cash balance (~$327m, BPe), as worthy of a re-rate in the multiple.
With respect to income, Bell Potter is forecasting fully franked dividends per share of 111.7 cents in FY 2025 and then 122.6 cents in FY 2026. Based on the current Premier Investments share price of $32.50, this equates to dividend yields of 3.4% and 3.8%, respectively.
The broker currently has a buy rating and a $38.00 price target on its shares.
