While Westpac Banking Corp (ASX: WBC) is a popular option for income investors, its shares are currently trading at a 52-week high.
In addition, they are trading beyond the valuations of almost all brokers. This makes them a riskier than usual proposition for investors.
In the absence of a decent pullback that creates a better entry point, income investors might find more value from the ASX dividend stocks listed below.
Here's what analysts are saying about them:
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Telstra Corporation Ltd (ASX: TLS)
Goldman Sachs thinks that telco giant Telstra could be a great option for income investors.
The broker rates the company highly due to its low risk earnings and dividends growth over FY 2023 to FY 2025.
It is expecting this to lead to Telstra paying fully franked dividends of 18 cents per share in FY 2024, 19 cents per share in FY 2025, and then 20 cents per share in FY 2026. Based on the current Telstra share price of $3.97, this equates to yields of 4.5%, 4.8%, and 5%, respectively.
Goldman has a buy rating and $4.65 price target on Telstra's shares.
Transurban Group (ASX: TCL)
Another ASX dividend stock that analysts think could be in the buy zone at current levels is toll road operator Transurban.
Citi remains positive on the company following its first half results release last week. So much so, it continues to expect Transurban to pay dividends ahead of guidance in FY 2024.
The broker is forecasting dividends per share of 63 cents in FY 2024, 65 cents in FY 2025, and 68 cents in FY 2026. Based on the current Transurban share price of $12.90, this will mean yields of 4.9%, 5%, and 5.3%, respectively.
Citi has a buy rating and $15.60 price target on the company's shares.
Finally, in case you were wondering, Goldman and Citi have neutral ratings and $22.85 and $22.25 price targets on Westpac's shares.
