Buy and hold these ASX dividend stocks for a decade

Analysts see bright futures for these buy-rated shares.

| More on:
A businessman hugs his computer and smiles.

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

If you're an income investor and have a penchant for buy and hold investing, then it could be worth considering the two ASX dividend stocks listed below.

Here's why they could be top long term options for investors:

Lottery Corporation Ltd (ASX: TLC)

Lottery Corporation could be a great ASX dividend stock to buy and hold. It is the lottery company responsible for the OZ Lotto, Powerball, and Keno brands.

The team at Citi is positive on Lottery Corporation and has a buy rating and $5.60 price target on its shares.

The broker highlights its defensive qualities and strong pricing power. In respect to the latter, the broker suggests that the market "underestimates the uplift to the contribution margin" from recent price rises.

It is also worth noting that since this note, the Powerball product has been on a stunning jackpot run. This could mean stronger than expected earnings and dividends during the second half.

In the meantime, the broker is forecasting dividends per share of 17 cents in FY 2024 and 18 cents in FY 2025. Based on the latest Lottery Corporation share price of $5.06, this will mean fully franked yields 3.3% and 3.5%, respectively.

Lovisa Holdings Ltd (ASX: LOV)

Another ASX dividend stock that could be a great long term pick is Lovisa. It is a leading fast fashion jewellery retailer with over 800 stores across over 30 countries.

But management isn't settling for that. It has huge global expansion plans, which are being overseen by a highly experienced CEO that has an incredible track record.

Morgans is confident in the company's plans. It notes that "investment will be needed to expand LOV's network in the US and Europe and to take it into new markets, but the company has the balance sheet capacity to fund this and the returns could be stellar."

Morgans has an add rating and $27.50 price target on its shares.

As for dividends, the broker is forecasting fully franked dividends of 70 cents per share in FY 2024 and 81 cents per share in FY 2025. Based on the current Lovisa share price of $23.02, this implies yields of 3% and 3.5%, respectively.

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor James Mickleboro has positions in Lovisa. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Lottery and Lovisa. The Motley Fool Australia has recommended Lovisa. 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

A happy male investor turns around on his chair to look at a friend while a laptop runs on his desk showing share price movements
Dividend Investing

Brokers name the ASX dividend shares to buy now

Let's see what they are saying about these income options.

Read more »

Different Australian dollar notes in the palm of two hands, symbolising dividends.
Dividend Investing

This 5% monthly dividend stock is a cash flow machine

If you want monthly passive income, check out this stock.

Read more »

A woman presenting company news to investors looks back at the camera and smiles.
Dividend Investing

Broker names the best ASX dividend shares to buy now

Let's see why the broker is feeling bullish about these income options.

Read more »

A cute little kid in a suit pulls a shocked face as he talks on his smartphone.
Dividend Investing

Up 38% in a year, is it too late to buy Telstra shares for the dividends?

A leading expert gives his verdict on Telstra’s passive income appeal following the stock's 38% 12-month share price gains.

Read more »

A young woman dressed in street clothes leaps happily in the air with the focus on her bright red boots that are front and centre for the camera.
Dividend Investing

This ASX dividend share is projected to pay a 10% yield by 2028

Analysts are expecting big payouts from this business.

Read more »

A couple sits in their lounge room with a large piggy bank on the coffee table. They smile while the male partner feeds some money into the slot while the female partner looks on with an iPad style device in her hands as though they are budgeting.
Dividend Investing

Want to turn $20K into a $1K second income? Here's how

ASX shares can pay you upfront for buying them...

Read more »

A man and woman sit next to each other looking at each other and feeling excited and surprised after reading good news about their shares on a laptop.
Dividend Investing

2 ASX dividend shares I think are great value today

These two stocks offer a lot of what I’m looking for.

Read more »

Excited couple celebrating success while looking at smartphone.
Dividend Investing

Buy Woodside and these ASX dividend stocks

Brokers have put buy ratings on these dividend payers.

Read more »