If you are on the hunt for some ASX dividend stocks to buy this month, then read on!
Listed below are two growing ASX dividend stocks that brokers are tipping as buys. Here's what they are saying about them:
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Collins Foods Ltd (ASX: CKF)
The first ASX dividend stock that could be a buy is Collins Foods.
It is a quick service restaurant operator with a focus on the KFC brand. In Australia it has 288 restaurants and in Europe it has 78 restaurants.
The team at Morgans is a positive on the company. It was pleased with its FY 2025 results and is feeling confident about the year ahead. It recently said:
CKF's FY25 result was materially better than expected with underlying NPAT 15% ahead of consensus mainly driven by stronger than guided margins. After a challenging 1H25, profitability materially improved in the 2H25 reflecting stronger SSS growth, cost deflation and operational efficiencies. Despite a weaker than expected trading update, CKF provided FY26 underlying NPAT guidance for low to mid-teens growth which was in line with consensus. […] In our view, CKF providing specific NPAT guidance this early in the year (for the first time) is a strong positive endorsement from management in the outlook.
In respect to income, Morgans is expecting fully franked dividends of 27 cents per share in FY 2026 and then 31 cents per share in FY 2027. Based on its current share price of $9.72, this would mean dividend yields of 2.8% and 3.2%, respectively.
The broker has a buy rating and $10.10 price target on its shares.
Universal Store Holdings Ltd (ASX: UNI)
Another ASX dividend stock that brokers rate as a buy is Universal Store.
It is a youth fashion focused retailer behind the eponymous Universal Store brand. In addition, it owns the Thrills and Perfect Stranger brands.
Bell Potter is bullish on the company's shares and believes they deserve a premium valuation. It recently commented:
While UNI trades at a ~19x P/E on a 1-year forward basis post the strong re-rate in the name over the past year, we continue to view distinctive growth traits supporting consistent outperformance in a challenging category, longer term opportunity with three brands, organic gross margin expansion via private label product penetration (currently ~55%) and management execution. We see catalysts ahead including broader tailwinds associated with interest rate cuts, potential inclusion in the S&P/ASX 300 index at the next rebalance in September justifying the multiple. Maintain BUY.
As for dividends, the broker is forecasting fully franked payouts of 36.8 cents in FY 2026 and then 41.1 cents in FY 2027. Based on its current share price of $8.74, this represents dividend yields of 4.2% and 4.7%, respectively.
Bell Potter has a buy rating and $10.50 price target on its shares.
