There are lots of ASX dividend stocks out there for income investors to choose from.
To narrow things down, let's take a look at three quality options that analysts are tipping as buys.
Here's what they are saying about them:
Accent Group Ltd (ASX: AX1)
Bell Potter thinks that Accent Group could be an ASX dividend stock to buy.
The broker likes the footwear retailer due to its scale and growth adjacencies from exclusive partnerships. It said:
With AX1 reverting back to strong positive comps in 4Q, we remain constructive on the name given the company's scale & exposure in terms of channels, brands & size as the overall industry navigates a challenging retail spend environment in addition to growth adjacencies via exclusive partnerships with globally winning brands such as Hoka and growing vertical brand strategy led by Nude Lucy. Our PT sees >15% premium to the share price so we maintain our BUY rating. The next potential catalyst is the Jul/Aug (FY25) trading update where we focus on the ability to sustain the current trading momentum together with gross margins and inventory.
Bell Potter expects this to underpin fully franked dividends per share of 13 cents in FY 2024 and then 14.6 cents in FY 2025. Based on the latest Accent share price of $2.15, this represents dividend yields of 6% and 6.8%, respectively.
Bell Potter has a buy rating and $2.50 price target on its shares.
Cedar Woods Properties Limited (ASX: CWP)
This property company could be an ASX dividend stock to buy.
That's the view of analysts at Morgans, which believe that its shares deserve to trade on higher multiples. The broker explains:
CWP is a volume business and the demand for lots looks to be improving, with margins to invariably follow. CWP's exposure to lower priced stock in higher growth markets sees further potential to drive earnings. On this basis, we see every reason for CWP to trade at NTA and potentially at a premium, were the housing cycle to gain steam through FY25/26.
In respect to dividends, Morgans is forecasting dividends per share of 18 cents in FY 2024 and then 20 cents in FY 2025. Based on the current Cedar Woods Properties share price of $4.87, this will mean dividend yields of 3.7% and 4.1%, respectively.
Morgans has an add rating and $5.60 price target on its shares.
Healthco Healthcare and Wellness REIT (ASX: HCW)
Another quality ASX dividend stock that analysts are positive on is Healthco Healthcare and Wellness REIT.
The team at Bell Potter is positive on the health and wellness focused property company and believes that recent share price weakness means it trades at an attractive discount. It said:
HCW has underperformed the REIT sector last 3 months following bond yield reversion and is attractively priced at 20% discount to NTA (but only REIT to record flat to positive valuation movement at 1H24) with double digit 3 year EPS CAGR given high relative sector debt hedging and ability to grow its $1bn development pipeline via attractive YoC spread to marginal cost of debt. Longer term, HCW has significant scope for growth with an estimated $218 billion addressable market where an ageing and growing population should underpin long-term sector demand.
As for income, Bell Potter is forecasting dividends per share of 8 cents in FY 2024 and then 8.3 cents in FY 2025. Based on its current share price of $1.17, this would mean yields of 6.8% and 7.1%, respectively.
Bell Potter has a buy rating and $1.50 price target on its shares.
