The team at Morgans has been busy running the rule over a number of ASX dividend stocks.
Two that have fared well and been given buy ratings are listed below. Here's what the broker is recommending to clients:
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Collins Foods Ltd (ASX: CKF)
This quick service restaurant operator could be worth considering according to Morgans.
It was pleased with the company's recent announcement of plans to make a bolt-on acquisition for its KFC business in Germany. Morgans described it as "sensible" and highlights that it is expected to be immediately accretive to earnings.
In response, the broker has upgraded this ASX dividend stock to a buy rating with a $12.70 price target. It said:
CKF has announced what we see as a high-quality German KFC bolt-on at attractive economics. CKF is acquiring an eight-restaurant Bavarian portfolio at just under 6x restaurant-level EBITDA (pre-AASB 16) and expects the deal to be immediately EPS accretive. The Germany runway has been extended through the German Development Agreement (DA) to 45-90 new restaurants (from 40-70), materially extending the organic growth runway.
We believe this was a sensible, returns-focused deal that adds weight to the Germany growth story; execution is still key, but with a refreshed team and strong operators at the helm, success in Germany should be the catalyst for a re-rate despite lingering Netherlands noise. We upgrade to a BUY with a $12.70 target (was $12.40).
As for income, Morgans is forecasting fully franked dividends of 29 cents per share in FY 2026 and then 35 cents per share in FY 2027. Based on its current share price of $9.79, this would mean dividend yields of 3% and 3.6%, respectively.
Jumbo Interactive Ltd (ASX: JIN)
Another ASX dividend stock that Morgans is recommending is online lottery ticket seller Jumbo Interactive.
It responded positively to the company's half-year results and put a buy rating and $14.90 price target on its shares. The broker said:
Jumbo Interactive (JIN) reported a solid 1H26 result, with most headline metrics pre-released. While Lottery Retailing was impacted by a softer jackpot cycle, offshore segments delivered encouraging growth and margin expansion. Managed Services continues to build momentum, with Canada EBITDA guidance upgraded and the UK tracking nicely. Underlying SaaS trends remain healthy ex-Lotterywest.
Following the update, we believe JIN can delever by FY27F, assuming a normalisation in Australian jackpot activity and continued offshore earnings growth. We have updated our model to reflect upgraded Managed Services and Prize Draw guidance, alongside refreshed FX assumptions. Our underlying EBITDA increases +1%/+5% across FY26-27F. We maintain our BUY recommendation with an unchanged $14.90 target price.
With respect to dividends, Morgans expects fully franked payouts of 28 cents per share in FY 2026 and then 38 cents per share in FY 2027. Based on its current share price of $7.71, this would mean dividend yields of 3.6% and 4.9%, respectively
