Income investors on the lookout for some new additions to their portfolios might want to check out the two cheap ASX dividend stocks listed below.
Let's see why analysts think they are in the buy zone in July:
Elders Ltd (ASX: ELD)
Agribusiness company Elders could be a top ASX dividend stock to buy according to analysts at Bell Potter.
The broker believes its shares are being undervalued by the market. Particularly given its expectation that Elders is positioned to grow its earnings in the double digits through to 2027. It commented:
Executing on existing initiatives (SYSMOD and backward integration) and leverage to cattle prices are expected to drive double digit EPS growth for ELD through to FY27e. Achieving a favourable outcome on Delta or deploying the $245m in capital already raised to finance the transaction would likely accelerate this growth profile. Importantly, we don't see any value ascribed for completion of Delta or execution of the base business strategy in the current ELD share price.
Another positive is that Bell Potter expects some attractive dividend yields from its shares in the near term. It is forecasting fully franked dividends of 36 cents per share in FY 2025 and then 43 cents per share in FY 2026. Based on the current share price of $6.43, this would mean dividend yields of 5.6% and 6.7%, respectively.
Bell Potter has a buy rating and $9.10 price target on its shares.
Jumbo Interactive Ltd (ASX: JIN)
Another ASX dividend stock that analysts think income investors should be buying is Jumbo Interactive.
It is an online lottery ticket seller best known for its Oz Lotteries website. It also offers the Powered by Jumbo lottery platform offering smart solutions to lottery operators.
The team at Macquarie thinks that recent weakness has created a buying opportunity for investors. It explains:
Jumbo is trading at a 45% P/E discount to the ASX 300 Industrials, its widest since 2017, following a significant de-rate at the 1H25 result, whereby earnings were impacted by jackpot activity (which will normalise) and market share losses, which if reversed, will be a key re-rating catalyst.
As for income, the broker is forecasting fully franked dividends of 50.5 cents per share in FY 2025 and then 63 cents per share in FY 2026. Based on its current share price of $10.01, this would mean yields of 5% and 6.3%, respectively.
Macquarie currently has an outperform rating and $13.90 price target on its shares.
