3 high-yield ASX dividend stocks named as buys

Analysts think big returns could be on offer with these buy-rated stocks.

| More on:
Different Australian dollar notes in the palm of two hands, symbolising dividends.

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

The Australian share market typically offers investors an average dividend yield of 4%.

While this yield is respectable, investors don't have to settle for average returns. Especially when there are high-yield ASX dividend stocks currently being recommended as strong buys.

Here's a look at three of them:

Clearview Wealth Ltd (ASX: CVW)

According to analysts at Morgans, Clearview Wealth could be a high-yield ASX dividend stock worth considering.

This life insurance company collaborates with financial advisers to help Australians safeguard their wealth. Morgans believes Clearview is well-positioned for strong earnings growth in the coming years, driven by its ongoing transformation program.

It expects this to support fully franked dividends of 3.6 cents per share in FY 2025 and then 4.3 cents per share in FY 2026. Based on the current Clearview share price of 51 cents, this would mean dividend yields of 7% and 8.4%, respectively.

The broker has an add rating and 81 cents price target.

Eagers Automotive Ltd (ASX: APE)

Eagers Automotive is another ASX dividend stock worth considering this week.

This automotive retail group operates over 250 locations across Australia and New Zealand and has a diverse portfolio that includes all 19 of the top 20 best-selling car brands in Australia and 9 of the top 10 luxury brands.

The team at Bell Potter remains positive about the company. In fact, it suspects that Eagers Automotive could surpass consensus expectations with its second-half performance in FY 2024.

The broker believes this leaves Eagers Automotive well-placed to pay its shareholders fully franked dividends of 66.5 cents per share in FY 2024 and then 73 cents per share in FY 2025. Based on its current share price of $11.13, this represents dividend yields of 6% and 6.6%, respectively.

Bell Potter currently has a buy rating and $13.00 price target on its shares.

Healthco Healthcare and Wellness REIT (ASX: HCW)

HealthCo Healthcare & Wellness REIT is a third high-yield ASX dividend share recommended as a buy right now.

This real estate investment trust focuses on properties in hospitals, aged care, childcare, government, life sciences and research, as well as primary care and wellness.

Analysts at Bell Potter are optimistic about its potential, citing a "significant scope for growth with an estimated $218 billion addressable market."

For now, the broker is forecasting dividends of 8.4 cents per share for FY 2025 and then 8.7 cents per share in FY 2026. Based on the current Healthco Healthcare and Wellness REIT unit price of $1.12, this will mean dividend yields of 7.5% and 7.8%, respectively.

Bell Potter currently has a buy rating and $1.50 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 recommended Eagers Automotive Ltd. 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

Rail worker in hard hat kneels over train tracks inspecting tracks
Dividend Investing

A fund manager is backing this fallen ASX 200 dividend giant as a turnaround buy

This ASX 200 stock could be on track for a turnaround.

Read more »

A woman standing in a blue shirt smiles as she uses her mobile phone to text message someone
Dividend Investing

Why income investors should buy Telstra and this ASX 200 dividend share now

Analysts have good things to says about these two giants.

Read more »

A businessman looking at his digital tablet or strategy planning in hotel conference lobby. He is happy at achieving financial goals.
Dividend Investing

Buy BHP and these ASX income stocks in November

What are analysts saying about these income options this month?

Read more »

A man holding a cup of coffee puts his thumb up and smiles while at laptop.
Dividend Investing

2 of the best ASX 200 dividend shares to buy next week

Analysts have good things to say about these income options.

Read more »

A happy older couple relax in a hammock together as they think about enjoying life with a passive income stream.
Dividend Investing

$10,000 of Fortescue shares could net me a $1,011 yearly passive income!

There are good reasons many ASX passive income investors own Fortescue shares.

Read more »

Happy young couple saving money in piggy bank.
Dividend Investing

Forget term deposits and buy these ASX dividend stocks

Analysts think these stocks would be great options for income investors.

Read more »

Smiling woman with her head and arm on a desk holding $100 notes out, symbolising dividends.
Dividend Investing

I'd buy 25,000 shares of this ASX stock for $4,000 a year in passive income

I really like this stock for its dividend credentials.

Read more »

Male hands holding Australian dollar banknotes, symbolising dividends.
Dividend Investing

Want the latest ResMed dividend? Here's what you need to do

The cutoff for ResMed's latest payout is fast approaching.

Read more »