Income investors have a lot of options on the local share market. But which ASX dividend stocks do brokers think are strong buys?
Let's take a look at two stocks that analysts have been tipping as buys today. They are as follows:
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Regal Partners Ltd (ASX: RPL)
The first ASX dividend stock that brokers are positive on is Regal Partners.
It is an alternative investment manager that has been in the headlines in recent weeks after making an offer for Platinum Asset Management Ltd (ASX: PTM).
The team at Bell Potter thinks the company's shares are great value at current levels. It has a buy rating and $4.97 price target on its shares. Based on its current share price of $3.61, this implies potential upside of 38% for investors.
Bell Potter likes the company due to its positive outlook and strong performance. It said:
We continue to favour RPL, given its strong organic & inorganic growth potential, and entrepreneurial culture. In the last six months, and following the recent acquisition of PM Capital and Taurus (50%), the firm has shown an acceleration of inflows, strong investment performance (which will give rise to performance fees) and success in marketing new funds. We feel this strong performance is not reflected in the share price and see considerable upside.
In respect to dividends, the broker is forecasting fully franked dividends per share of 19.5 cents in FY 2025 and 22.1 cents in FY 2026. This would mean dividend yields of 5.4% and 6.1%, respectively.
Woodside Energy Group Ltd (ASX: WDS)
Over at Morgans, its analysts think that income investors should consider buying energy giant Woodside's shares.
The broker has an add rating and $33.00 price target on its shares. Based on its current share price of $26.68, this suggests that upside of 24% is possible over the next 12 months.
Much like Regal Partners, its analysts think that Woodside's shares are being undervalued by the market. Morgans recently commented:
A tier 1 upstream oil and gas operator with high-quality earnings that we see as likely to continue pursuing an opportunistic acquisition strategy. WDS's share price has been under pressure in recent months from a combination of oil price volatility and approval issues at Scarborough, its key offshore growth project. With both of those factors now having moderated, with the pullback in oil prices moderating and work at Scarborough back underway, we see now as a good time to add to positions.
As for income, the broker is forecasting fully franked dividends of $1.93 per share in FY 2024 and $1.61 per share in FY 2025. Based on its current share price, this will mean dividend yields of 7.2% and then 6%.
