Buy these ASX dividend stocks with 4% to 6% yields

Analysts have good things to say about these income options.

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Looking for some great dividend yields? If you are, then check out the two ASX stocks listed below.

Brokers are feeling very upbeat about these stocks and are tipping them as top buys. Let's hear what they are saying about them:

Cedar Woods Properties Limited (ASX: CWP)

Cedar Woods could be an ASX dividend stock to buy according to analysts at Morgans.

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. The good news is that it expects more of the same in FY 2025 thanks to favourable trading conditions. The broker 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.

Morgans is expecting this profit growth to underpin dividends per share of 27 cents in FY 2025 and then 31.7 cents in FY 2026. Based on its current share price of $5.85, this equates to 4.6% and 5.4% dividend yields, respectively.

Morgans has an add rating and $6.50 price target on the company's shares.

Santos Ltd (ASX: STO)

Over at Ord Minnett, its analysts think that Santos could be another ASX dividend stock to buy. It is one of the leading independent oil and gas producers in the Asia-Pacific region, supplying energy needs across Australia and Asia.

The broker likes Santos due partly to its positive free cash flow (FCF) outlook. It notes that this is being supported by its Pikka and Barossa LNG operations. Its analysts said:

An estimated FCF yield of 20% once Pikka and Barossa LNG start producing, and rigorous control of how that extra cash is spent, implies to us that Santos will have plenty of room to return excess capital to shareholders either via an increased payout ratio or share buybacks. In our view, the medium-term prospects for Santos offer a compelling investment opportunity.

Ord Minnett expects this to support dividends per share of 41 cents in FY 2024 and then 44 cents in FY 2025. Based on the current Santos share price of $7.11, this will mean dividend yields of 5.75% and 6.2%, respectively.

The broker currently has a buy rating and $8.40 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 no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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