Buy these ASX dividend stocks for a passive income boost

Analysts are bullish on these names. Let's see what they are saying about them.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

If you have room in your income portfolio for a new addition or two, then check out the ASX dividend stocks listed below.

They have recently been named as buys by brokers and tipped to provide good dividend yields. Here's what you need to know about these shares:

Man putting in a coin in a coin jar with piles of coins next to it.

Image source: Getty Images

Aspen Group Limited (ASX: APZ)

The first ASX dividend stock that could be a buy is Aspen Group. It is a leading provider of quality affordable accommodation across residential, land lease, and holiday park communities.

Bell Potter has been impressed with its strong start to FY 2025 and has named it as one of its highest conviction picks. 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. Notwithstanding, APZ's valuation screens attractively relative to peers at a +9% premium to NTA (pre benefit of cash uplift from Burleigh & EGH stake) vs. c.+31-34% premium for LIC and INA respectively.

As for income, it now expects 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 $2.48, this will mean dividend yields of 4% and 4.15%, respectively.

The broker has a buy rating and $2.75 price target on its shares.

Super Retail Group Ltd (ASX: SUL)

Another ASX dividend stock that could be a buy is Super Retail. It is the owner of popular store brands BCF, Supercheap Auto, Macpac, and Rebel.

Goldman Sachs is positive on the company and believes its shares are good value considering its positive growth outlook through to FY 2027. It said:

We retain our Buy rating on SUL on 1) activation of 11.5mn members (77% sales) driving targeted marketing and increased member ARPU 2) Robust store growth driving sales including investment in enhanced rCX (rebel) and superstore (BCF) formats 3) Capital mgmt potential with GSe FY25 Net cash ~A$174m. SUL is trading at a FY25E P/E of 15x vs LT avg of 13x, against 4% FY24-27e EPS CAGR.

As for income, Goldman expects Super Retail to be in a position to pay fully franked dividends per share of 68 cents in FY 2025 and then 73 cents in FY 2026. Based on its current share price of $16.42, this will mean yields of 4.1% and 4.4%, respectively.

The broker currently has a buy rating and $16.80 price target on its shares.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Super Retail Group. The Motley Fool Australia has positions in and has recommended Super Retail Group. The Motley Fool Australia has recommended Aspen Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Dividend Investing

Man holding out Australian dollar notes, symbolising dividends.
Dividend Investing

Down 40%: These high-yield ASX dividend shares are rated as buys

Brokers expect these buy-rated shares to offer 6% to 11% dividend yields.

Read more »

A young bearded man wearing a white t-shirt with a yellow backdrop holds up his arms to his chest and points to the camera in celebration of ASX shares rising today
Dividend Investing

1 ASX dividend stock up 20% that I'd hold through any market

I think this classic defensive ASX dividend company is a no-brainer buy and long-term hold.

Read more »

excited young female in business attire and wearing glasses is holding up $100 notes in both hands.
Dividend Investing

5 ASX dividend shares I'd buy for a second income

From property to supermarkets, these ASX dividend shares offer different ways to build income over time.

Read more »

a graph indicating escalating results
Dividend Investing

Has your ASX dividend stock increased its payout 28 years in a row?

This business has been incredibly consistent with dividend growth.

Read more »

Man holding fifty Australian Dollar banknotes in his hands, symbolising dividends.
Dividend Investing

Get paid huge amounts of cash to own these ASX dividend shares!

These businesses have a lot to offer income seekers!

Read more »

A woman wearing a yellow shirt smiles as she checks her phone.
Share Market News

1 ASX dividend stock down 18% — I'd buy right now

I'd buy this ASX dividend stock at any stage of the economic cycle.

Read more »

Man holding fifty Australian Dollar banknotes in his hands, symbolising dividends.
Dividend Investing

These 3 ASX dividend shares yield 5% (or more) with monthly payouts

These are my top picks for a monthly passive income.

Read more »

Smiling woman with her head and arm on a desk holding $100 notes, symbolising dividends.
Dividend Investing

I'd buy 22,166 shares of this ASX stock to aim for $50 a week of passive income

This business is providing investors with consistent and pleasing dividends.

Read more »