Are you looking for some new additions to your income portfolio?
If you are, then the two ASX dividend shares in this article could be worth a closer look.
Here's what analysts are saying about these buy-rated stocks right now:
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Aspen Group Limited (ASX: APZ)
The first ASX dividend share that could be a buy according to analysts is Aspen Group.
It is a leading provider of quality affordable accommodation across residential, land lease, and holiday park communities.
Analysts at Bell Potter are feeling very positive about the company. They like Aspen due to its strong track record and high return on equity focus. The broker was also pleased with its strong start to FY 2025. It said:
Strong update from APZ early in FY25 is a positive indicator for the year and further runway ahead with both improving volume and margin. Indeed, APZ remains one of our highest conviction picks across our coverage universe. APZ's affordable market segment (c.40% of Aus households with income <$90k pa) as well as conservative underwriting place it in a strong position to deliver sales and settlements despite challenges others may be facing.
In respect to income, Bell Potter is expecting the company to pay dividends per share of 10 cents in FY 2025 and then 10.3 cents in FY 2026. Based on the current Aspen share price of $2.46, this will mean dividend yields of 4.1% and 4.2%, respectively.
It currently has a buy rating and $2.75 price target on its shares.
Santos Ltd (ASX: STO)
Another ASX dividend share that could be a good option for income investors is Santos.
It is of course one of the leading independent oil and gas producers in the Asia-Pacific region, supplying energy needs across Australia and Asia.
The team at Ord Minnett is feeling positive about the company. It believes that the energy giant has a positive free cash flow (FCF) outlook. This is thanks to the Pikka and Barossa LNG operations. The broker said:
An estimated FCF yield of 20% once Pikka and Barossa LNG start producing, and rigorous control of how that extra cash is spent, implies to us that Santos will have plenty of room to return excess capital to shareholders either via an increased payout ratio or share buybacks. In our view, the medium-term prospects for Santos offer a compelling investment opportunity.
Ord Minnett expects this to underpin dividends per share of 41 cents in FY 2024 and then 44 cents in FY 2025. Based on the current Santos share price of $7.21, this would mean dividend yields of 5.7% and 6.1%, respectively.
The broker has a buy rating and $8.50 price target on the company's shares.
