Brokers say these quality ASX dividend stocks are buys

Here's what they are saying about these income options this month.

| More on:
A smiling businessman in the city looks at his phone and punches the air in celebration of good news.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Looking for new additions to your income portfolio? If you are, then it could pay to listen to what brokers are saying about the ASX dividend stocks in this article.

These stocks have been named as buys and tipped to deliver solid total returns over the next 12 months. Here's what you need to know about them:

Aspen Group Limited (ASX: APZ)

The first ASX dividend stock we're going to look at is Aspen Group. It is a leading provider of quality affordable accommodation across residential, land lease, and holiday park communities.

The team at Bell Potter is bullish on Aspen Group and has a buy rating and $2.40 price target on its shares. It highlights the company's heavy insider ownership, its attractive valuation, and positive growth outlook as reasons to be positive. It said:

APZ co-CEO's hold a large combined stake in the business (c.8%), the company has delivered 20% EPS growth last 5 years, and based on guidance (notwithstanding 11% higher SOI) is expecting to grow 9% in FY25. Still, the valuation is undemanding (7% discount to NTA; 13.5x 1yr forward PE vs. 15.1x sector average) and we think an improving residential macro back drop will only further boost APZ as it works towards ASX300 inclusion in time.

Bell Potter expects this to underpin dividends per share of 9.5 cents in FY 2025 and then 10.3 cents in FY 2026. Based on the current Aspen share price of $2.24, this will mean dividend yields of 4.25% and 4.6%, respectively.

Cedar Woods Properties Limited (ASX: CWP)

Another ASX dividend stock that brokers rate highly is Cedar Woods. It is one of Australia's leading property companies with a portfolio diversified by geography, price point and product type.

Morgans is a fan of the company and has an add rating and $6.50 price target on its shares. The broker believes that another strong result is coming in FY 2025. Particularly given the positive operating conditions it is experiencing in key markets. 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.

Morgans is forecasting dividends per share of 27 cents in FY 2025 and then 31.7 cents in FY 2026. Based on its current share price of $5.66, this equates to 4.8% and 5.6% dividend yields, respectively.

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 positions in and has recommended Aspen Group. The Motley Fool Australia has recommended Aspen Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Dividend Investing

A man with a wry smile on his face is shown close up behind ascending piles of coins as he places another coin on top of the tallest stack representing rising dividends
Dividend Investing

Here are the 3 biggest dividend payers in my ASX stock portfolio today

These three stocks pour cash in to my portfolio...

Read more »

A senior investor wearing glasses sits at his desk and works on his ASX shares portfolio on his laptop.
Dividend Investing

Overinvested in Fortescue shares? I'd buy these ASX dividend shares

Fortescue may not be the best choice for dividend income.

Read more »

Close up of woman using calculator and laptop for calculating dividends.
Dividend Investing

Forget term deposits! I'd buy these two ASX 200 shares instead

I’d rather buy these stocks for income than hold a term deposit right now.

Read more »

A man in a suit smiles at the yellow piggy bank he holds in his hand.
Dividend Investing

Forget CBA shares and buy these ASX dividend shares

Analysts are bearish on CBA but bullish on these shares.

Read more »

Man holding out Australian dollar notes, symbolising dividends.
Dividend Investing

Own IVV ETF or other iShares ASX ETFs? Next dividends and DRP prices revealed…

BlackRock has announced the next lot of dividends for its iShares ETFs, as well as the DRP prices.

Read more »

A woman sits in a cafe wearing a polka dotted shirt and holding a latte in one hand while reading something on a laptop that is sitting on the table in front of her
Dividend Investing

How are these passive income investors earning a 7.5% dividend yield on their surging CBA shares?

CBA shares are proving more lucrative for some passive income investors than others.

Read more »

A couple cheers as they sit on their lounge looking at their laptop and reading about the rising Redbubble share price
Dividend Investing

3 excellent ASX dividend shares to buy with $2,500

Brokers think these shares could be in the buy zone for income investors.

Read more »

A woman sits in a quiet home nook with her laptop computer and a notepad and pen on the table next to her as she smiles at information on the screen.
Opinions

2 top ASX passive income stocks to buy with $5,000 today

I think these leading ASX passive income shares will keep delivering market beating yields in FY 2026.

Read more »