If you are looking for some ASX dividend shares to buy, then it could be worth considering the two in this article.
They are down over 20% since this time last year and at levels that offer generous dividend yields and major upside potential according to analysts. Here's what they are recommending:
Elders Ltd (ASX: ELD)
The first ASX dividend share that analysts are tipping as a buy is Elders.
It is a leading supplier of fertiliser, agricultural chemicals, and animal health products to rural and regional Australia, with strong agency positions in livestock, wool, and real estate.
Bell Potter is positive on the company due to its belief that trading conditions have improved significantly since this time last year, setting up the company for a solid result in FY 2025. It said:
We would expect many of the issues that plagued 1Q24 have largely unwound in 1Q25 and as such would anticipate a more normal phasing in earnings in FY25e. We remain of the view that the Delta-Elders overlap is limited and manageable (we note the ACCC's final Supermarkets review is also overdue) and would see this a catalyst for momentum to return.
As for income, the broker is forecasting a partially franked 36 cents per share dividend in FY 2025 and then a fully franked 43 cents per share dividend in FY 2026. Based on its current share price of $6.91, this equates to dividend yields of 5.2% and 6.2%, respectively.
Bell Potter also sees plenty of upside for Elders' shares with its buy rating and $9.40 price target.
Endeavour Group Ltd (ASX: EDV)
Another ASX dividend share that analysts are tipping as a buy is Endeavour. It is a leading alcohol company with a collection of hotels across the country and a leadership position in the retail market with its Dan Murphy's and BWS brands.
Goldman Sachs thinks the company would be a great option after recent weakness. Especially when you compare its valuation to other consumer staples. It said:
Net net, 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 [now 16.4x] vs historical average of 22x and WOW 22x, COL 21x.
In addition, the broker is forecasting some attractive dividend yields from its shares. It has pencilled in fully franked dividends per share of 19 cents in FY 2025 and then 22 cents in FY 2026. Based on its current share price of $4.10, this equates to yields of 4.6% and 5.35%, respectively.
Goldman has a buy rating and $5.10 price target on Endeavour's shares. This implies potential upside of 24% over the next 12 months.
