Experts say these ASX dividend stocks are cheap buys

Income investors might want to check out these shares for their dividends.

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Key points

  • Macquarie highlights Jumbo Interactive for its robust growth outlook and attractive valuation, forecasting a 25% EPS CAGR over three years and offering potential yields of up to 4.1% by FY 2027 from its Oz Lotteries and powered platform.
  • Sonic Healthcare is backed by Bell Potter for its solid organic growth, with anticipated dividend yields approaching 5%, driven by its global leadership in pathology and diagnostics and growth via strategic acquisitions.
  • Bell Potter favours Universal Store's expansion in private labels and store rollout, projecting appealing dividend yields and a buy rating as the retailer capitalises on youth-focused fashion trends.

There are a lot of options for income investors to choose from on the local share market.

To narrow things down, let's take a look at three ASX dividend stocks that analysts are tipping as buys this month. They are as follows:

Jumbo Interactive Ltd (ASX: JIN)

The first ASX dividend stock to look at is Jumbo Interactive. It is an online lottery ticket seller and lottery platform provider, best known for its Oz Lotteries app and Powered by Jumbo platform.

The team at Macquarie is positive on Jumbo and sees significant value in its shares at current levels. Especially given its strong growth outlook. It said:

We forecast +25% three-year EPS CAGR (FY25-28), and see attractive valuation on 11.5% free-cash-flow yield & 11x P/E, 12-months forward.

The broker is forecasting fully franked dividends of 33 cents per share in FY 2026 and then 44.5 cents per share in FY 2027. Based on its current share price of $10.93, this would mean dividend yields of 3% and 4.1%, respectively.

Macquarie has an outperform rating and $15.00 price target on its shares.

Sonic Healthcare Ltd (ASX: SHL)

Another ASX dividend stock that could be a buy according to analysts is Sonic Healthcare. It is one of the largest pathology and diagnostic imaging providers in the world.

Bell Potter is positive on this one and believes it is well-placed for solid growth in the coming years. It explains:

One can expect SHL to generate solid mid-high single digit organic EPS growth with addon benefit of acquisitions to drive double-digit growth on a normal basis. SHL is a sold compound generator, which is why it holds appeal in our view.

As for dividends, the broker expects partially franked dividends of 109 cents per share in FY 2026 and then 111 cents per share in FY 2027. Based on its current share price of $22.52, this represents dividend yields of 4.8% and 4.9%, respectively.

Bell Potter has a buy rating and $33.30 price target on its shares.

Universal Store Holdings Ltd (ASX: UNI)

Finally, Universal Store could be an ASX dividend stock to buy. It is a youth-focused fashion retailer behind the Thrills, Perfect Stranger, and Universal Store.

Bell Potter believes the company is well-placed for growth thanks to its private label expansion and store rollout. It said:

At ~18x FY26e P/E (BPe), we see UNI trading at a discount to the ASX300 peer group and see the multiple justified by the distinctive growth traits supporting consistent outperformance in a challenging broader category, longer term opportunity with three brands, organic gross margin expansion via private label product penetration (currently ~55%) and management execution.

It is forecasting fully franked dividends of 37.3 cents per share in FY 2026 and then 41.4 cents per share in FY 2027. Based on its current share price of $8.08, this equates to dividend yields of 4.6% and 5.1%, 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 positions in and has recommended Jumbo Interactive and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Jumbo Interactive, Sonic Healthcare, 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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