Why analysts love these ASX dividend shares

Brokers have good things to say about these income options.

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There are lots of ASX dividend shares out there for investors to choose from.

To narrow things down, let's take a look at two top options that analysts are tipping as buys.

Here's what they are saying about these income options:

Clearview Wealth Ltd (ASX: CVW)

The first ASX dividend share that analysts are tipping as a buy is Clearview Wealth.

It is a life insurance business that partners with financial advisers to help Australians protect their wealth. At present, the company manages over $350 million of inforce premiums and has relationships with over 1,000 Australian Financial Services Licensees, representing around 5,000 financial advisers.

Morgans thinks that Clearview trades on undemanding multiples despite being destined to deliver strong earnings growth in the coming years. It said:

CVW's significant multiyear Business Transformation Program has, in our view, shown clear signs of driving improved growth and profitability in recent years. We expect further benefits to flow from this program in the near term, and we see CVW's FY26 key business targets as achievable. With a robust balance sheet, and with our expectations for ~21% EPS CAGR over the next three years, we see CVW's current ~11x FY25F PE multiple as undemanding.

In respect to dividends, the broker is forecasting fully franked dividends of 2.9 cents per share in FY 2024 and 3.5 cents per share in FY 2025. Based on the current Clearview share price of 60 cents, this would mean dividend yields of 4.8% and 5.8%, respectively.

Morgans has an add rating and 78 cents price target on its shares

HomeCo Daily Needs REIT (ASX: HDN)

Over at Morgans, its analysts think that HomeCo Daily Needs could be an ASX income stock to buy.

It is a property company with a focus on neighbourhood retail and large format retail assets. Its three largest tenants include Coles Group Ltd (ASX: COL), Wesfarmers Ltd (ASX: WES), Woolworths Group Ltd (ASX: WOW).

The broker believes that HomeCo Daily Needs is well-placed for growth over the long term thanks to favourable trends and its development pipeline. It said:

The portfolio has resilient cashflows and continues to be a beneficiary of accelerating click & collect trends. +80% of tenants are national and ~75% of tenants offer click & collect reinforcing the importance of assets being able to support 'last mile logistics'. Sites are also in strategic locations with strong population growth (+80% metro). HDN offers an attractive distribution yield and the development pipeline provides growth opportunities.

Morgans expects this to underpin dividends per share of 8.5 cents in FY 2025 and then 8.7 cents in FY 2026. Based on the current HomeCo Daily Needs share price of $1.27, this will mean dividend yields of 6.7% and 6.85%, respectively.

The broker has an add rating and $1.36 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 Wesfarmers. The Motley Fool Australia has positions in and has recommended Coles Group and Wesfarmers. 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.

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