The Australian share market is home to plenty of dividend stocks. But which high-yield options could be buys right now?
Let's look at two ASX dividend stocks that brokers are tipping as buys. Here's what they are saying about them:
GQG Partners Inc (ASX: GQG)
Goldman Sachs thinks that GQG Partners could be a top ASX dividend stock to buy now.
It is a global investment boutique focused on managing active equity portfolios. At the last count, it managed US$153 billion for investors that include many large pension funds, sovereign funds, wealth management firms, and other financial institutions around the world.
Goldman Sachs remains positive on the company despite a recent hiccup caused by its investments in the Adani Group. It said:
We are Buy rated on GQG because: 1) Net flow trajectory has been very strong but has slowed 2) Strong performance has resulted in performance fees becoming increasingly more material 3) Medium and long term relative performance strong 4) Attractive valuation vs. peers in context of very strong earnings growth. 5) Impacts from Adani entity investments appear manageable.
As for dividends, Goldman is forecasting some very large dividend yields in the near term. It is expecting dividends per share of 14 US cents (22.6 Australian cents) in FY 2025 and then 15 US cents (24.2 Australian cents) in FY 2026. Based on its current share price of $1.80, this would mean massive dividend yields of 12.5% and 13.4%, respectively.
Goldman has a buy rating and $3.00 price target on its shares.
HomeCo Daily Needs REIT (ASX: HDN)
Another ASX dividend stock to consider buying is HomeCo Daily Needs.
HomeCo Daily Needs is a property company with a mandate to invest in convenience-based assets across the target sub-sectors of neighbourhood retail, large format retail and health and services.
At present, it has 51 properties with a 99% occupancy rate. Its tenants include Coles Group Ltd (ASX: COL), Wesfarmers Ltd (ASX: WES), and Woolworths Group Ltd (ASX: WOW).
Morgans likes the company and believes it is positioned for growth and is forecasting some big yields. 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.
In respect to income, 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 $1.14, this will mean dividend yields of 7.5% and 7.6%, respectively.
Morgans has an add rating and $1.36 price target on its shares.
