There are plenty of ASX dividend stocks to choose from on the local market, but which ones could be buys in March?
Two shares that were recently identified as buys by analysts at Morgans are listed below. Here's what its analysts are saying about them:
Image source: Getty Images
Bapcor Ltd (ASX: BAP)
Morgans thinks that this auto parts retailer could be an ASX dividend stock to buy. It has an add rating and $6.60 price target on its shares.
While the broker acknowledges that a change of management creates a bit of uncertainty, it believes its current valuation incorporates this. Morgans commented:
However, despite incurring mgmt and strategy change and a difficult cost environment, the business has been resilient. We think the valuation point continues to provide value on a medium-term view.
In respect to dividends, the broker is forecasting the company to pay 19.5 cents per share in FY 2024 and 23 cents per share in FY 2025. Based on the current Bapcor share price of $5.95, this implies dividend yields of 3.3% and 3.9%, respectively.
Dexus Convenience Retail REIT (ASX: DXC)
Another ASX dividend stock that could be a buy according to Morgans is Dexus Convenience Retail REIT. It is a convenience retail and service station property company.
The broker believes that the company's shares are great value at current levels. So much so, last month it put an add rating and $3.23 price target on them. This implies almost 17% upside for investors from current levels.
As for income, the broker is expecting big dividend yields in the coming years. Morgans is forecasting dividends per share of 21 cents in both FY 2024 and FY 2025. Based on its current share price of $2.77, this implies yields of 7.6%.
