If you want some new ASX dividend stocks for your income portfolio, then read on!
That's because listed below are two with growing dividend yields that analysts are tipping as buys right now. Here's what they are saying about them:
Image source: Getty Images
Eagers Automotive Ltd (ASX: APE)
Analysts at Morgans think that auto retailer Eagers Automotive could be an ASX dividend stock to buy.
It notes that Eagers Automotive's trading update revealed that its profits are slightly ahead of expectations this year despite a number of headwinds. As a result, the broker has put an add rating and $19.15 price target on its shares. It commented:
APE's trading update noted underlying (YTD to May-25) PBT is tracking marginally ahead of the pcp, despite headwinds from holiday timing and the Qld cyclone. The group cycles a strong June -24 (we expect a relatively flat 1H25 PBT), however APE expressed strong confidence in the full year outlook. APE reconfirmed its >A$1bn revenue growth target and stated they are very active in reviewing 'accretive and material' opportunities both domestically and offshore.
Near term, visible top-line growth and a persistent focus on margin provides earnings resilience and a solid growth outlook. Long term, we expect APE to continue to prove that the group's scale extends its competitive advantage, and along with industry change and offshore aspirations increases the growth avenues.
In respect to dividends, Morgans is forecasting fully franked dividends of 74 cents per share in FY 2025 and then 76 cents per share in FY 2026. Based on its current share price of $17.68, this would mean dividend yields of 4.2% and 4.3%, respectively.
Telstra Group Ltd (ASX: TLS)
The team at Macquarie is positive on telco giant Telstra and has named it as an ASX dividend stock to buy.
In response to its Connected Future 30 strategy update this week, the broker has upgraded Telstra's shares to an outperform rating with an improved price target of $5.28. Commenting on the telco leader, the broker said:
We revise FY25/26/27/28e EPS by 3%/11%/8%/10%, reflecting updated FY25 capex and FCF guidance. Variance between NPAT and EPS is driven by the share buyback. We also reflect upcoming postpaid price increases and associated increases to sales, assuming some SIO loss from higher prices and associated spin-downs/churn.
This is somewhat mitigated by competitor price increases. In the outer years, we reflect new debt gearing and cash earnings growth targets, as well as capital management in the form of greater dividend growth. This is amplified by completion of the buyback.
As well as boosting its earnings estimates, the broker has lifted its expectations for the Telstra dividend in the near term. It now forecasts fully franked dividends of 19.95 cents per share in FY 2025 and 22 cents per share in FY 2026. Based on its current share price of $4.78, this would mean dividend yields of 4.2% and 4.6%, respectively.
