2 ASX dividend shares to buy this month: experts

These two stocks with solid yields are rated as buys.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points
  • Scentre Group (ASX: SCG) is poised for growth with seven buy ratings from analysts, benefiting from RBA cash rate cuts enhancing household spending and reducing interest rates, boosting property values.
  • In the latest report, Scentre experienced a 2.9% rise in business partner sales, a 3.2% FFO increase, and aims to offer a 4.2% yield with a 17.72 cents annual distribution per security for 2025.
  • Steadfast Group Ltd (ASX: SDF), praised by broker UBS, maintains profit growth despite a revenue slowdown through cost control, with a projected 6% to 10% FY26 EPS growth and a 5.1% grossed-up dividend yield.

There are a wide range of appealing ASX dividend shares available for Aussies to buy. Experts have named some of them as appealing opportunities.

I'm not talking about the biggest Australian companies like Commonwealth Bank Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC) or Rio Tinto Ltd (ASX: RIO).

Both businesses I'll cover are leaders in Australia and they're rated as opportunities by some brokers. Let's take a look.

Man holding a calculator with Australian dollar notes, symbolising dividends.

Image source: Getty Images

Scentre Group (ASX: SCG)

Scentre is the owner of Westfield shopping centres in Australia and New Zealand. According to a collation of analyst opinions by Commsec, there are currently seven buy ratings on the business.

I believe cash rate cuts by the RBA will be significantly beneficial for this business. It could lead to an increase in household budgets, enabling more expenditure at Scentre's locations.

Rate cuts may also mean a reduction in interest rates for Scentre, helping operating profits.

Finally, the underlying value of Scentre's properties could increase thanks to rate cuts.

In the recent reporting season, the ASX dividend share reported that in the six months to June 2025, business partner sales increased 2.9% year-over-year to $13.8 billion. It also revealed funds from operations (FFO) growth of 3.2% to $587 million and distribution per security growth of 2.5% to 8.815 cents.

It's expecting to pay an annual distribution of 17.72 cents per security for 2025, which translates into a yield of 4.2% at the time of writing.

Steadfast Group Ltd (ASX: SDF)

Broker UBS is one institution that likes Steadfast. UBS describes this business as Australasia's largest general insurance broker network and underwriting agency group, with general insurance brokerages across Australia, Asia and Europe.

After seeing the recent FY25 result from the company, UBS noted an organic revenue slowdown, but it's "pulling on costs to maintain profit growth". Cost control helped margins improve in both the broker and agency segments.

Steadfast has guided that FY26 earnings per share (EPS) could grow by between 6% to 10%, consisting of 3% from acquisitions and between 3% to 7% from organic sources. UBS said this growth rate is "respectively in the context of a moderating premium rate outlook" and interest income headwinds.

The broker is expecting a greater US contribution to the FY26 numbers, with the Novum acquisition adding US$100 million of gross written premium (GWP). While not a retail broker, it is the ASX dividend share's first agency/wholesale acquisition in the US, which UBS called a sizeable deal.

UBS is forecasting that the business could pay an annual dividend per share of 22 cents in FY26. This would translate into a grossed-up dividend yield of 5.1%, including franking credits.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Steadfast Group. The Motley Fool Australia has positions in and has recommended Steadfast Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

A panel of four judges hold up cards all showing the perfect score of ten out of ten
Share Gainers

Here are the top 10 ASX 200 shares today

It was a veritable party on the ASX today.

Read more »

Middle age caucasian man smiling confident drinking coffee at home.
Broker Notes

Is this ASX defence stock the next DroneShield?

Bell Potter thinks this stock could be the next to rocket. Let's find out why.

Read more »

Happy, tablet or doctor in a laboratory with research results or positive feedback after medical data analysis. Smile, vaccine or healthcare worker reading or working on futuristic science innovation.
Broker Notes

This ASX healthcare stock could almost double in value according to Bell Potter

The broker believes this stock is making major breakthroughs.

Read more »

Smiling man sits in front of a graph on computer while using his mobile phone.
Broker Notes

Top brokers name 3 ASX shares to buy today

Here's what brokers are recommending as buys this week.

Read more »

ASX board.
Share Market News

ASX 200 charges higher again as relief rally gathers pace

The ASX 200 keeps climbing as global tensions begin to ease.

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why Dateline, Karoon Energy, Lindian, and PEXA shares are falling today

These shares are missing out on the good times on Wednesday. But why?

Read more »

Excited couple celebrating success while looking at smartphone.
Share Gainers

Why Arafura Rare Earths, Eagers Automotive, Life360, and Pro Medicus shares are racing higher today

These shares are having a good session on hump day. But why?

Read more »

A man slumps crankily over his morning coffee as it pours with rain outside.
Share Fallers

These were the worst-performing ASX 200 shares in March

These shares were out of form in March. Let's see why investors sold them off.

Read more »