Buy these ASX dividend stocks with ~5% to 7% yields

Brokers think income investors should be checking out these stocks.

| More on:
Hand holding Australian dollar (AUD) bills, symbolising ex dividend day. Passive income.

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 are on the hunt for new income portfolio additions, then read on!

Listed below are four ASX dividend stocks that analysts believe could be quality picks for investors this month.

In addition, they are forecasting dividend yields of between ~5% and 7% from them. Here's what you need to know:

Centuria Industrial REIT (ASX: CIP)

The team at UBS thinks that Centuria Industrial could be an ASX dividend stock to buy.

It is Australia's largest domestic pure play industrial property investment vehicle with a portfolio of high-quality, fit-for-purpose industrial assets situated in key in-fill locations and close to key infrastructure.

The broker is expecting Centuria Industrial's portfolio to support the payment of dividends per share of 16 cents in both FY 2024 and in FY 2025. Based on the current Centuria Industrial share price of $3.15, this represents dividend yields of 5.1% in both years.

UBS has a buy rating and $3.50 price target on its shares.

HomeCo Daily Needs REIT (ASX: HDN)

Another ASX dividend stock to look at is HomeCo Daily Needs. It is a property company focused on neighbourhood retail and large format retail assets.

The team at Morgans likes HomeCo Daily Needs due to the resilience of its cashflows and exposure to accelerating click and collect trends.

Morgans expects this to allow the company to pay dividends per share of 8 cents in FY 2024 and then 9 cents in FY 2025. Based on the current HomeCo Daily Needs share price of $1.22, this will mean dividend yields of 6.6% and 7.4%, respectively.

The broker currently has an add rating and $1.37 price target on its shares.

Inghams Group Ltd (ASX: ING)

Morgans also thinks that Inghams could be an ASX dividend stock to buy right now. It is Australia's leading poultry producer and supplier.

The broker thinks its shares are undervalued given its leadership position and favourable consumer trends.

It also believes that some attractive dividend yields are coming in the near term. Morgans is forecasting fully franked dividends of 22 cents per share in both FY 2024 and FY 2025. Based on the current Inghams share price of $3.64, this will mean dividend yields of 6%.

Morgans has an add rating and $4.25 price target on its shares.

Transurban Group (ASX: TCL)

Finally, analysts at UBS also think that Transurban could be an ASX dividend share to buy this month.  It is one of the world's leading toll road operators.

The broker believes that Transurban is positioned to pay dividends per share of 62 cents in FY 2024 and then 66 cents in FY 2025. Based on the current Transurban share price of $12.77, this will mean yields of 4.9% and 5.2%, respectively.

The broker currently has a buy rating and $14.60 price target on its shares.

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 positions in and has recommended Transurban Group. The Motley Fool Australia has recommended HomeCo Daily Needs REIT. 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 woman sits at her computer with her hand to her mouth and a contemplative smile on her face as she reads about the performance of Allkem shares on her computer
Dividend Investing

Is the Suncorp share price a buy for passive income?

Investors could gain a lot of income from this stock.

Read more »

View of a business man's hand passing a $100 note to another with a bank in the background.
Dividend Investing

3 ASX dividend shares to buy with $10,000

Let’s see which shares brokers think are in the buy zone right now.

Read more »

Delighted adult man, working on a company slogan, on his laptop.
Dividend Investing

Why Macquarie predicts this high-yielding ASX 300 dividend stock is set to surge 32%

Macquarie expects some outsized returns from this ASX 300 dividend stock. Let’s find out why.

Read more »

A woman standing in a blue shirt smiles as she uses her mobile phone.
Dividend Investing

Buy Telstra and this ASX dividend stock for passive income

Macquarie thinks that these stocks could be top picks for income investors.

Read more »

A man holding a cup of coffee puts his thumb up and smiles while at laptop.
Dividend Investing

Analysts name the best ASX dividend stocks to buy this month

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

Read more »

Australian dollar notes in the pocket of a man's jeans, symbolising dividends.
Dividend Investing

Buy these ASX dividend shares for 5% to 7% yields

Brokers think these shares could be top picks for passive income investors.

Read more »

A smiling businessman in the city looks at his phone and punches the air in celebration of good news.
Dividend Investing

Own ASX A200, NDQ, or ARMR ETFs? It's dividend payday for you!

Betashares will pay distributions to ASX ETF investors today.

Read more »

A young female ASX investor sits at her desk with her fists raised in excitement as she reads about rising ASX share prices on her laptop.
Dividend Investing

Why it's a great day for Vanguard ASX ETF investors!

It's dividend payday for investors in the VAS, VHY, VGS and other Vanguard ETFs today.

Read more »