Are you wanting to make some new additions to your income portfolio this week?
If you are, it could be worth considering the two ASX 200 dividend stocks listed below. That's because analysts are tipping the two giants as buys right now.
Here's what sort of dividend yields you can expect to receive from them in the near term:
Image source: Getty Images
Woodside Energy Group Ltd (ASX: WDS)
The team at Morgans thinks that Woodside could be an ASX dividend stock to buy. It is a global energy company providing the energy the world needs to heat and cool homes, keep lights on, and enable industry.
Morgans thinks its shares are undervalued at current levels. It recently put an add rating and $33.00 price target on them. The broker said:
The tide is certainly out in terms of investor sentiment on WDS. Despite Brent oil trading in line with our long-term forecast, WDS' share price implies a near cycle-low oil price level. We do not see this as capable of being explained by WDS' growth profile (comfortably funded) or risks around non-core assets such as Browse. While the share price performance has been disappointing, supported by a strong balance sheet and high margins, we see WDS investors as capable of being patient. We maintain an ADD recommendation believing WDS offers attractive long-term value.
As for dividends, Morgans 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 of $24.63, this will mean dividend yields of 7.8% and 6.5%, respectively.
Woolworths Group Ltd (ASX: WOW)
Another ASX dividend stock that has been rated as a buy is Woolworths. It is Australia's largest retailer, operating the eponymous Woolworths supermarket chain, Big W, and a growing pet care business.
The company notes that each week, it aims to provide the best possible convenience, value, range and quality to the 24 million customers it serves across its network.
Goldman Sachs is a big fan of the company and has a buy rating and $40.10 price target on its shares. It said:
We are Buy rated on the stock as we believe the business has among the highest consumer stickiness and loyalty among peers, and hence has strong ability to drive market share gains via its omni-channel advantage, as well as its ability to pass through any cost inflation to protect its margins, beyond market expectations. The stock is trading below its historical average (since 2018), and we see this as a value entry level for a high-quality and defensive stock.
In respect to income, the broker is forecasting fully franked dividends of $1.08 per share in FY 2025 and then $1.19 per share in FY 2026. Based on its current share price of $32.70, this will mean yields of 3.3% and 3.6%, respectively.
