Income investors have a lot of options to choose from when it comes to ASX dividend stocks.
To narrow things down, let's see what brokers are recommending to clients this month.
Two that have been given the thumbs up are listed below. Here's why they could be buys:
IVE Group Ltd (ASX: IGL)
Bell Potter thinks that IVE Group could be an ASX dividend stock to buy now.
IVE Group may not be a familiar name, but it has been around for a very long time. It is Australia's largest integrated marketing communications business with leading positions across every sector in which the company operates.
The team at Bell Potter believes it is well-placed to pay some big dividends in the near term. It recently said:
Over the past 20 years or so has expanded organically into logistics, creative services, integrated marketing and web offset printing and through acquisition into data driven communications, retail display, premiums and merchandising, marketing automation, distribution and digital catalogues. The result is a diversified, resilient business which has supported a consistently high dividend yield and a strong Balance Sheet to pursue further growth opportunities.
As for income, Bell Potter is forecasting fully franked dividends of 18 cents per share in both FY 2025 and FY 2026. Based on its current share price of $2.69, this equates to 6.7% dividend yields.
The broker has a buy rating and $2.80 price target on its shares.
Steadfast Group Ltd (ASX: SDF)
Another ASX dividend stock that could be a buy according to brokers is Steadfast.
Steadfast owns a group of insurance brokers that provide commercial insurance solutions for SME clients. The company also operates the SDF network of brokers.
The team at Goldman Sachs is feeling bullish about the company's outlook. This is due to acquisition opportunities, organic growth, and its defensive business model. It explains:
We like SDF because of the industry structure favouring insurance brokers. 1) Premium rate environment remains supportive of organic growth trends (albeit moderating); 2) Little to no exposure to underwriting risk with revenues largely dependent on premiums written; 3) An opportunity to acquire EPS accretively with unlisted acquisitions at multiples accretive to earnings (including offshore); 4) A defensive business model which is relatively resilient to economic activity; 5) Valuation appeal compared to global peers.
In respect to dividends, Goldman is forecasting fully franked payouts per share of 20 cents in FY 2025 and then 22 cents in FY 2026. Based on its current share price of $5.99, this would mean dividend yields of 3.3% and 3.7%, respectively.
Goldman has a buy rating and $6.50 price target on its shares.
