Are you searching for some new additions for your income portfolio in October?
Well, if you are, it could be worth considering the two ASX 300 dividend stocks listed below that analysts at Morgans are tipping as buys.
Here's what sort of dividend yields you can expect from them in the near term:
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Accent Group Ltd (ASX: AX1)
This leisure footwear retailer could be an ASX 300 dividend stock to buy according to analysts at Morgans. The broker currently has an add rating and $2.40 price target on its shares.
Morgans was relatively pleased with Accent's performance in FY 2024 given tough trading conditions. And, importantly, it expects a nice rebound in earnings this year. It explains:
AX1 achieved positive growth in sales in FY24, despite the challenging retail environment and a poor wholesale performance. Earnings were down yoy due to sales growth tracking below the rate of cost inflation (as well as material non-recurring costs relating to Glue), but this was in line with the guidance given in July. An improving retail and wholesale sales trajectory, moderating cost inflation and the elimination of some of the losses in Glue, will combine to see earnings recover in FY25.
In respect to income, its analysts are forecasting fully franked dividends per share of 14 cents in FY 2025 and then 15 cents in FY 2026. Based on its current share price, this will mean dividend yields of 5.9% and 6.3%, respectively.
Cedar Woods Properties Limited (ASX: CWP)
Analysts at Morgans are also tipping Cedar Woods as an ASX 300 dividend stock to buy.
The broker was pleased with the property developer's performance in FY 2024. And much like Accent, a strong performance in FY 2025 is expected from the property developer. It explains:
CWP announced FY24 NPAT of $40.5m, up 28% (vs pcp) and above both the guidance range of $36m – $39m and our prior forecast of $37.8m. The key contributor was the sale of the William Land Shopping Centre, with lot revenue and gross profit broadly stable. Looking forward, the signs are positive, with guidance for +10% NPAT growth in FY25, supported by favorable operating conditions in most key states.
As for dividends, Morgans has pencilled in dividends per share of 27 cents in FY 2025 and then 31.7 cents in FY 2026. Based on its current share price, this equates to 4.9% and 5.75% dividend yields, respectively.
Morgans has an add rating and $6.50 price target on the company's shares.
