Are you looking for some new additions to your income portfolio?
If you are, it could be worth considering the two ASX dividend stocks listed below that analysts are tipping as buys.
Here's what sort of dividend yields you can expect from them in the near term:
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Cedar Woods Properties Limited (ASX: CWP)
The team at Morgans thinks that Cedar Woods could be an ASX dividend stock to buy.
It is one of Australia's leading property developers with a portfolio diversified by geography, price point, and product type.
Morgans was pleased with the company's performance in FY 2024 and expects more of the same in the future. It said:
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.
The broker expects this to support dividends per share of 27 cents in FY 2025 and then 31.7 cents in FY 2026. Based on its current share price of $5.74, this equates to 4.7% and 5.5% dividend yields, respectively.
Morgans has an add rating and $6.50 price target on the company's shares.
Nickel Industries Ltd (ASX: NIC)
Over at Bell Potter, its analysts think that Nickel Industries could be a top option if you're not opposed to investing in the mining sector.
It is a globally significant, low-cost producer of nickel pig iron (NPI), which is a key ingredient in stainless steel production.
Bell Potter believes its shares are undervalued given its positive growth outlook and attractive dividend yield. It explains:
NIC is the only pure-play producer of scale on the ASX providing exposure to the nickel price, with earnings diversified across Type 1 and Type 2 nickel. Its aggressive growth profile is fully funded, it is currently moving through the peak CAPEX phase which we forecast to drive strong earnings growth in CY25 and CY26. NIC has long-life assets with demonstrated ability to make money through the nickel price cycle while also sustaining a supportive (unfranked) dividend which we forecast to grow. At these levels it trades on undemanding valuation multiples.
The broker expects Nickel Industries to pay 5 cents per share dividends in FY 2024 and FY 2025. Based on its current share price of 92 cents, this would mean dividend yields of 5.4% in both years.
Bell Potter has a buy rating and $1.47 price target on its shares.
