Why analysts are recommending these ASX dividend stocks to their clients

Looking for income options? Analysts think these are the ones to buy.

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Fortunately for income investors, there are a lot of ASX dividend stocks to choose from on the local market.

To narrow things down, let's take a look at two that analysts believe are top buys right now. They are as follows:

Flight Centre Travel Group Ltd (ASX: FLT)

Morgans thinks that travel agent giant Flight Centre could be a top ASX dividend stock to buy now.

The broker believes it is worth sticking with the company during this current period of short term uncertainty. That's because when operating conditions finally improve, it is expecting Flight Centre's earnings to rebound materially. 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 52 cents per share in FY 2026 and then 61 cents per share in FY 2027. Based on the current Flight Centre share price of $15.46, this would mean dividend yields of 3.4% and 3.9%, respectively.

The broker currently has a buy rating and $18.38 price target on its shares.

Universal Store Holdings Ltd (ASX: UNI)

Another ASX dividend stock that could be a top buy according to analysts is Universal Store.

It is a leading youth focused apparel, footwear, and accessories retailer with around 85 stores under its flagship Universal Store brand. In addition, it is growing its store network with stand-alone formats for its private label brands Perfect Stranger and Thrills stores.

The team at Bell Potter is bullish on the company's outlook and feels that the market is undervaluing its shares. It explains:

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 category, longer term opportunity with three brands, organic gross margin expansion via private label product penetration (currently ~55%) and management execution.

While catalysts associated with further interest rate cuts for Australia in CY25 are not imminent post the third rate cut in August, we continue to see the youth customer prioritising on-trend streetwear and expect UNI to benefit with their leading position.

Bell Potter believes this leaves the company well-placed to pay 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 $8.35, this would mean dividend yields of 4.5% and 5%, respectively.

The broker currently 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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