Are you on the hunt for some new ASX dividend stocks to buy?
If you are, then it could be worth checking out the three in this article that brokers rate as buys. Let's see what they are recommending to clients:
Adairs Ltd (ASX: ADH)
Adairs could be an ASX dividend stock to buy according to brokers. It is a leading homewares and furniture retailer behind the Adairs, Focus on Furniture, and Mocka brands.
The team at Morgans is positive on the company. It believes Adairs is well-placed for growth thanks to its streamlined supply chain and new national distribution centre.
Morgans believes this will underpin fully franked dividends of 14 cents per share in FY 2025 and then 17 cents in FY 2026. Based on the current share price of $2.70, that equates to attractive dividend yields of 5.2% and 6.3%, respectively.
The broker currently has an add rating and $2.85 price target on its shares.
Rural Funds Group (ASX: RFF)
A second ASX dividend stock that brokers rate as a buy is Rural Funds.
It is a real estate investment trust (REIT) that owns a diversified portfolio of Australian agricultural assets. It notes that its strategy is to generate capital growth and income from developing and leasing agricultural assets.
Bell Potter is positive on the company and believes its shares are undervalued at current levels. It is also expecting some attractive dividend yields in the near term.
The broker is forecasting dividends per share of 11.7 cents in FY 2025 and then 12.2 cents in FY 2026. Based on the current Rural Funds share price of $1.76, this will mean yields of 6.6% and 6.9%, respectively.
Bell Potter has a buy rating and $2.45 price target on its shares.
Woolworths Group Ltd (ASX: WOW)
A third ASX dividend stock that could be a buy is Woolworths.
It is one of Australia's big two supermarket operators. In addition, it owns Big W, a growing pet care business, and a number of other complementary businesses.
Goldman Sachs is a fan of the company due to its "strategic advantage in omni-channel and digital assets."
It expects this to support the pay out of fully franked dividends of 84 cents per share in FY 2025 and then $1.08 per share in FY 2026. Based on its current share price of $32.10, this will mean dividend yields of 2.6% and 3.35%, respectively.
Goldman has a buy rating and $36.50 price target on its shares.
