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:
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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.
