Are you wanting some ASX dividend stocks for your income portfolio? If you are, then read on.
That's because the two listed below have recently been named as cheap buys and tipped to offer good dividend yields by analysts. Here's what they are recommending:
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Dexus Convenience Retail REIT (ASX: DXC)
The team at Bell Potter thinks that Dexus Convenience Retail REIT could be a top ASX dividend stock to buy right now.
Dexus Convenience Retail REIT is a property company that owns a high-quality portfolio of Australian service stations and convenience retail assets. Commenting on the company, Bell Potter said:
DXC remains one of our preferred ways to play externally managed REITs given its high distribution yield (c.7.1%), price discovery via asset sales (with >10% of the book recycled last 18m), yet trading at a -20% discount to NTA, despite NTA starting to regrow."
In respect to income, Bell Potter is forecasting dividends of 20.6 cents per share in FY 2025 and then 20.9 cents per share in FY 2026. Based on the current Dexus Convenience Retail REIT share price of $2.95, this equates to dividend yields of 7% and 7.1%, respectively.
The broker currently has a buy rating and $3.35 price target on its shares. This implies double-digit upside for investors.
Sonic Healthcare Ltd (ASX: SHL)
Another dividend stock that could be a buy according to analysts at Bell Potter is healthcare company Sonic Healthcare.
The broker thinks that Sonic Healthcare's post-COVID turnaround is gathering pace and that a return to sustainable growth is on the horizon. It explains:
SHL should return to growth, with c.7.9% / c.9.1% / c.9.7% revenue, EBITDA and Normalised NPAT growth. We expect EBITDA margins to begin to recover in FY25 and deliver c.110bp improvement through to FY27. Growth is being driven by right sizing the business, the impact of acquisitions in FY24 and normalising organic operations post COVID. Our estimates are broadly in line with consensus.
As for dividends, the broker is forecasting payouts of 107 cents per share in FY 2025 and then 109 cents per share in FY 2026. Based on its current share price of $27.10, this represents dividend yields of 3.9% and 4%, respectively.
Another positive is that Bell Potter sees plenty of upside for its shares over the next 12 months. The broker currently has a buy rating and $33.70 price target on them.
