If you're an income investor on the lookout for new investment options, then read on.
Listed below are two ASX dividend stocks that are both buy-rated and expected to offer attractive dividend yields. Here's what you need to know:
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Super Retail Group Ltd (ASX: SUL)
The first ASX dividend stock that could be a buy is Super Retail.
While times are hard in the retail sector, Goldman Sachs remains positive on the owner of the Macpac, Rebel, and Super Cheap Auto brands.
This is partly due to the resilience of its businesses and its extensive loyalty program. Goldman believes the latter is a big competitive advantage for the company. It said:
We believe that the company's positive trading update continues to display resilience that is built upon its competitive advantage of high loyalty (~10m active members accounting for >70% of sales) and this will be further bolstered in 2H23 as the company launches the Rebel loyalty program and continues to build personalisation capabilities.
As for dividends, the broker is forecasting fully franked dividends per share of 71 cents in FY 2023 and then 63 cents in FY 2024. Based on the current Super Retail share price of $10.80, this will mean dividend yields of 6.6% and 5.8%, respectively.
Goldman has a buy rating and a $14.90 price target on its shares.
Wesfarmers Ltd (ASX: WES)
Another ASX dividend stock that has been named as a buy is Wesfarmers.
Morgans rates the owner of Bunnings, Kmart, and WesCEF as a buy currently. In fact, it has the conglomerate on its best ideas list. This is due to its strong management team and low price points. The broker commented:
WES possesses one of the highest quality retail portfolios in Australia with strong brands including Bunnings, Kmart and Officeworks. The company is run by a highly regarded management team and the balance sheet is healthy. We believe WES's businesses, which have a strong focus on value, remain well-placed for growth despite softening macro-economic conditions.
In respect to dividends, Morgans has pencilled in fully franked dividends per share of $1.79 in FY 2023 and $1.92 in FY 2023. Based on the current Wesfarmers share price of $48.42, this will mean yields of 3.7% and 4%, respectively.
Morgans currently has an add rating and a $55.60 price target on Wesfarmers' shares.
