The best ASX dividend stocks to buy before the rest of the market does

Analysts don't think these stocks will be cheap for much longer.

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Key points

  • Morgans recommends Flight Centre Travel Group for its potential upside when market conditions improve, projecting dividend yields of 4.3% and 4.9% over the next two fiscal years.
  • Universal Store Holdings is favored by Bell Potter due to its attractive valuation and growth outlook, supported by store expansion and margin improvements, with expected yields of 4.3% and 4.8%.
  • Both companies are rated as buys by leading brokers, offering promising dividend stocks with future income potential for investors looking at ASX shares.

Are you on the hunt for some ASX dividend stocks to buy this month?

If you are, then it could be worth considering the two buy-rated options in this article.

They are being recommended by leading brokers and are tipped to offer generous dividend yields in the near term. Here's what they are saying about them:

Flight Centre Travel Group Ltd (ASX: FLT)

The team at Morgans thinks that travel agent giant Flight Centre could be an ASX dividend stock to buy this month.

Although trading conditions haven't been easy, the broker thinks it is worth sticking with the company, especially given its belief that when the tide finally turns, the upside could be material for investors. It explains:

FLT's FY25 result was broadly in line with its recent update. Corporate was weaker than expected while Leisure and Other were stronger. FLT's guidance for a flat 1H26 was stronger than we expected however it was weaker than consensus. Earnings growth is expected to accelerate in the 2H26 from an improvement in macro-economic conditions and internal business improvement initiatives. We have made minor upgrades to our forecasts. We are buyers of FLT during this period of short-term uncertainty and share price weakness because when operating conditions ultimately improve, both its earnings and share price leverage to the upside will be material.

As for income, Morgans is forecasting fully franked dividends of 51 cents per share in FY 2026 and then 58 cents per share in FY 2027. Based on the current Flight Centre share price of $11.86, this would mean dividend yields of 4.3% and 4.9%, respectively.

Morgans currently has a buy rating and $15.65 price target on its shares.

Universal Store Holdings Ltd (ASX: UNI)

Another ASX dividend stock that is being recommended by brokers is Universal Store.

It is a youth fashion focused retailer behind the eponymous Universal Store brand, as well as the Thrills and Perfect Stranger brands.

Bell Potter thinks that it would be a great pick for investors. Especially given its attractive valuation and positive growth outlook. The latter is being underpinned by its store expansion and margin improvements. It explains:

Universal Store Holdings is a leading youth focused apparel, footwear and accessories retailer in Australia. UNI will continue to increase store numbers over the next few years, supporting earnings growth of 10% p.a.. Valuation looks attractive, trading on a forward P/E of ~16x. UNI is a quality small cap (ROE ~26%) that is executing on its rollout strategy.

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 $8.53, this represents dividend yields of 4.3% and 4.8%, respectively.

Bell Potter has a buy rating and $10.50 price target on its shares.

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

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