Buy Coles and these ASX dividend stocks

Income investors may want to check out these dividend stocks that analysts rate as buys.

| More on:
Couple holding a piggy bank, symbolising superannuation.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

sdf

ASX dividend stocks can be a great way to generate an income.

But which ones could be buys?

Three dividend stocks that analysts are tipping as buys this month are listed below. Here's what you need to know about them:

Baby Bunting Group Ltd (ASX: BBN)

The first ASX dividend stock that analysts think could be a buy is baby products retailer Baby Bunting.

Morgans is feeling upbeat about the company's outlook following a tough period. This led to the broker recently increasing its "NPAT estimates by 17% in FY24 and 7% in FY25 as a result of cost-out initiatives and higher sales assumptions."

Its analysts are also predicting some generous dividend yields in the near term. They are forecasting fully franked dividends per share of 9.9 cents in FY 2024 and then 12.9 cents in FY 2024. Based on the current Baby Bunting share price of $1.89, this will mean yields of 5.2% and 6.8%, respectively.

Morgans has an add rating and $2.50 price target on its shares.

Coles Group Ltd (ASX: COL)

Another ASX dividend stock that analysts have tipped as a buy is supermarket giant Coles.

Citi is feeling positive about the company partly due to anti-theft measures. As a result of these actions, its analysts "expect the drag from theft on gross margin will begin to materially reverse in 2H24."

The broker expects this to underpin fully franked dividends of 64 cents per share in FY 2024 and 70 cents per share in FY 2025. Based on the current Coles share price of $15.79, this will mean yields of 4% and 4.4%, respectively.

Citi has a buy rating and $17.50 price target on its shares.

Rural Funds Group (ASX: RFF)

Finally, over at Bell Potter, its analysts continue to believe that agricultural property company Rural Funds could be an ASX dividend stock to buy.

Its analysts highlight that the company's share price was recently "trading at its largest discount to market NAV since listing."

In addition, the broker is forecasting some big yields from its shares in the coming years. It is expecting dividends per share of 11.7 cents in FY 2024 and FY 2025. Based on the current Rural Funds share price of $2.08, this will mean yields of 5.6% for investors.

The broker has a buy rating and $2.25 price target on its shares.

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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 positions in and has recommended Coles Group and Rural Funds Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Dividend Investing

Cheerful boyfriend showing mobile phone to girlfriend in dining room. They are spending leisure time together at home and planning their financial future.
Dividend Investing

These ASX dividend stocks could supercharge your passive income

Let's see which stocks are being tipped as buys by analysts this month.

Read more »

A woman with a magnifying glass adjusts her glasses as she holds the glass to her computer screen and peers closely at it.
Dividend Investing

This is the ASX share in my portfolio with the biggest dividend yield

This stock offers a big dividend yield.

Read more »

Broker written in white with a man drawing a yellow underline.
Dividend Investing

Brokers say these ASX 200 dividend shares are top buys

Here are three shares that brokers think income investors should be buying.

Read more »

Two funeral workers with a laptop surrounded by cofins.
Dividend Investing

Forget term deposits! I'd buy these two ASX dividend shares instead

These two stocks look like appealing, defensive options.

Read more »

Happy shareholders clap and smile as they listen to a company earnings report.
Dividend Investing

Broker says this dirt cheap ASX 200 stock could rise almost 50%

Bell Potter has very good things to say about this stock.

Read more »

Animation of a man measuring a percentage sign, symbolising rising interest rates.
Dividend Investing

Beat falling interest rates with these ASX dividend shares

Analysts think these shares could be top picks for income investors in a low interest rate environment.

Read more »

A group of five people dressed in black business suits scrabble in a flurry of banknotes that are whirling around them, some in the air, others on the ground as some of them bend to pick up the money.
Dividend Investing

2 ASX 200 shares that could make it rain dividends

These stocks are sending significant passive income to shareholders.

Read more »

Close-up of a business man's hand stacking gold coins into piles on a desktop.
Dividend Investing

Buy these popular ASX dividend stocks for 4% to 6% yields

Analysts think income investors should be snapping up these stocks while they can.

Read more »